0 reply
18 recasts
21 reactions
One key macro indicator that is closely tied to crypto is the ISM Purchasing Managers Index (PMI).
The PMI is a key economic indicator that reflects the prevailing economic conditions in the manufacturing sector of the United States. Compiled by the Institute for Supply Management (ISM), the PMI is based on monthly surveys of over 400 purchasing managers across various industries, providing insights into factors such as production, new orders, employment, and supplier deliveries.
Key Features of the ISM PMI:
Diffusion Index: The PMI is a diffusion index, meaning it summarizes whether market conditions are expanding, stable, or contracting. A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signifies contraction. A value of exactly 50 suggests no change in activity compared to the previous month.
Components: The PMI is calculated using five major components, each weighted differently:
1. New Orders (30%)
2. Production (25%)
3. Employment (20%) 0 reply
0 recast
0 reaction
