Purchasing Managers' Index (PMI)

The Purchasing Managers’ Index, or PMI, is based on data that reflects the financial health of companies in the manufacturing sector. The data is collected through monthly surveys of companies and covers different factors, including production, number of new orders, inventories, employment numbers, and other points that measure efficiency. The businesses surveyed report their performance compared to previous months: A PMI higher than 50 means the company has expanded, while a PMI lower than 50 reflects a contraction.