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Purchasing Managers’ Index (PMI)

The Purchasing Managers’ Index (PMI) is a survey-based indicator that measures the level of business activity in the manufacturing and services sectors of an economy. The PMI is calculated by surveying purchasing managers at a representative sample of companies in each sector and asking them about their purchasing and production plans.

The PMI is typically expressed as a single number, with a value above 50 indicating expansion in the sector and a value below 50 indicating contraction. The PMI is composed of several sub-indices that measure different aspects of business activity, including new orders, production levels, employment, and supplier deliveries.

The PMI is used as a leading indicator of economic activity, as it can provide early signals of changes in business conditions and economic trends. It is used by policymakers, investors, and analysts to track the performance of the manufacturing and services sectors and to make decisions about economic policy and investment.

The PMI is widely regarded as one of the most important economic indicators, as it provides timely and comprehensive data on the state of the economy. The PMI is published on a regular basis by a number of private research firms and industry associations, and it is closely watched by financial markets and policymakers around the world.

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