Purchasing Managers Index (PMI)
The Purchasing Managers Index (PMI) is an economic indicator used to measure the health of the manufacturing sector. It is based on a survey of purchasing managers from a variety of industries, including manufacturing, construction, and services. The PMI is released monthly by the Institute for Supply Management (ISM) and is used to gauge the direction of the economy. A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 indicates contraction.
History of the PMI
The PMI was first developed in the late 1950s by the National Association of Purchasing Managers (NAPM). The NAPM was a professional organization of purchasing managers from a variety of industries. The PMI was designed to measure the health of the manufacturing sector and provide an early indication of economic trends. The NAPM was later renamed the Institute for Supply Management (ISM) and continues to release the PMI today.
Comparison of PMI Readings
| Month | PMI Reading |
|---|---|
| January | 53.1 |
| February | 52.4 |
| March | 51.5 |
| April | 50.7 |
Summary
The Purchasing Managers Index (PMI) is an economic indicator used to measure the health of the manufacturing sector. It is based on a survey of purchasing managers from a variety of industries and is released monthly by the Institute for Supply Management (ISM). A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 indicates contraction. For more information about the PMI, visit the Institute for Supply Management website at https://www.ism.ws/.
See Also
- Consumer Price Index (CPI)
- Gross Domestic Product (GDP)
- Employment Cost Index (ECI)
- Producer Price Index (PPI)
- Retail Sales Index (RSI)
- Business Confidence Index (BCI)
- Consumer Confidence Index (CCI)
- Housing Price Index (HPI)
- Manufacturing Index (MI)
- Leading Economic Index (LEI)
