What is PMI? The US Manufacturing Purchasing Managers Index, or PMI for short, is an economic indicator that reflects the health of the manufacturing sector in the United States.
PMI does that by looking at the data of around 400 purchasing managers from different firms in the United States.
Those purchasing managers are asked a few questions regarding the health of their business. They have three answers to choose from. “better than previous month”, “same as previous month” and “worse than previous month”.
These answers are sorted out and given as an easy to read number. Reading above 50 is considered bullish for the economy, reading below 50 is bearish and 50 is neutral, meaning that pretty much there are no changes.