Purchasing Managers' Index

U.S. PMI Index 2012 - 2022
  Manufacturing
  Above 50 is expansion, below 50 is contraction
  Services
ISM's Purchasing Managers Index 1948–2012

Purchasing managers' indexes (PMI) are economic indicators derived from monthly surveys of private sector companies.

The three principal producers of PMIs are S&P Global (from 2022 merger with IHS Markit), which produces PMIs for over 30 countries worldwide and developed the first service sector PMIs, and the Institute for Supply Management (ISM), which originated the manufacturing surveys produced for the United States. Other producers include the Singapore Institute of Purchasing and Materials Management (SIPMM), which produces the Singapore PMI,[1] Swedbank in Sweden, NBS in mainland China, and Credit Suisse in Switzerland.

An official global PMI is produced by S&P Global in association with J.P.Morgan, the ISM and IFPSM, which also includes detailed sector survey results. Regional headline indicators and detailed sector data are also compiled by S&P Global.

The purchasing managers' index (PMI) surveys are compiled on a monthly basis by polling businesses which represent the makeup of the respective business sector. S&P Global surveys cover manufacturing, services and in some cases also construction, while ISM's surveys cover all NAICS categories. SIPMM survey covers just the manufacturing sector.[2]

The surveys are released shortly after the end of the reference period. The actual release dates depend on the sector covered by the survey. Manufacturing data are generally released on the first business day of the month, non-manufacturing/services on the third business day, and construction on the fourth business day.

The purchasing managers surveys include additional sub indices for manufacturing surveys such as new orders, employment, exports, stocks of raw materials and finished goods, prices of inputs and finished goods.[3]

Purchasing managers' index (PMI) data are widely used often due to their ability to give a reliable indicator of key economic variables such as gross domestic product (GDP) and consumer price inflation (CPI).[4][5][6] Other benefits include the data's timeliness due to it being released shortly after the end of the reference period, and the data is not revised after publication.[3]

  1. ^ "Manufacturing expands for 18th straight month in February but pace of growth slows". The Straits Times. Retrieved 2 March 2018.
  2. ^ "About SIPMM". Singapore Institute of Purchasing and Materials Management. Retrieved 15 June 2016.
  3. ^ a b "PMI". www.spglobal.com. Retrieved 12 November 2024.
  4. ^ de Bondt, Gabe; Saiz, Lorena (2024-02-08). "Is the PMI a reliable indicator for nowcasting euro area real GDP?". {{cite journal}}: Cite journal requires |journal= (help)
  5. ^ Rossiter, James (2010-09-17). "Nowcasting the Global Economy". www.bankofcanada.ca. Retrieved 2024-11-12.
  6. ^ "Sharing insights elevates their impact". S&P Global. 2019-07-04. Retrieved 2024-11-12.