What is PMI and why is it important?

The Purchasing Managers’ Index (PMI) has been in news all through the last two weeks. Many countries across the world released their PMI numbers for the month of May – which determined the trend in their stock markets. The PMI is considered as a measure of the ongoing direction of economic trends in the manufacturing sector in a specific region. Calculated on a monthly basis, the PMI is based on a survey of various supply chain managers. It gets governments up to speed with the direction towards which the crucial manufacturing sector is going. So, it helps them in taking calls and intervening in the right time. Suppliers also take calls based on the PMI numbers -- in a bid to estimate the amount of future demand. Investors use the PMI to their advantage because it is a major indicator of economic conditions. In short, the early signs of an economic slowdown are reflected by the PMI itself. Both PMI and GDP denote the major economic direction of the country. However, the difference lies at the basic level. While the GDP is a measure of all the goods and services produced within a geographic area, the PMI is always focused on the manufacturing activity. Another most important factor is the time allocation. This PMI is more real-time than the GDP. The GDP, on the other hand, is backdated by at least two months. #pmi #economictrends #stockmarkets #kalkinemedia To get more updates about Australia, NZ, UK & Canada stock market news, investors education & insights subscribe our channel at https://bit.ly/3cHKioy Check out our media Website 👉 https://kalkinemedia.com/au Follow us and stay updated on the Go with the Stock Market 👇👇 Facebook -   / kalkineau   Twitter -   / kalkineau   LinkedIN -   / 4829818