PMI stands for Purchasing Managers' Index, a monthly measure of economic activity based on surveys of manufacturing and service sector managers. The index ranges from 0 to 100, with values above 50 indicating economic expansion and values below 50 indicating contraction. It is considered a leading indicator of future economic performance.
If the Manufacturing PMI comes in at 52, it suggests that purchasing managers believe their factories are expanding because they are ordering more materials and producing more goods. A PMI of 48 would suggest contraction, as managers are ordering less.
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