Purchasing Managers Index
A survey-based indicator of economic health in manufacturing and services.
Quick answer
The purchasing managers index surveys business activity to signal economic expansion or contraction.
Definition
The purchasing managers index is a survey of business activity in manufacturing or services that signals whether the economy is expanding or contracting. A reading above 50 shows growth, below 50 shows contraction. It is a fast-moving economic gauge that traders follow closely.
How It Works
- Above 50 means growth, below means contraction
- It covers manufacturing and services
- It is a fast gauge of the economy
Trading Tips
1
Read it for the direction of the economy
2
Expect currency moves on surprises
3
Pair it with CPI for a fuller read
Related Terms
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