Economics

Purchasing Managers’ Index (PMI) is an economic indicator that measures the health of the manufacturing and services sectors. It is based on surveys of purchasing managers across various industries and reflects key variables like new orders, inventory levels, production, supplier deliveries, and employment conditions. A PMI above 50 indicates expansion, while a reading below 50 signals contraction. It is important because it provides insights into the economic direction, helping businesses, investors, and policymakers make informed decisions by offering a timely snapshot of market conditions and potential future economic trends.