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Purchasing Managers’ Index (PMI)

Purchasing Managers’ Index is an influential economic indicator that is calculated by taking the survey responses of a large sample of purchasing managers. The respondents to the survey are asked about the general business conditions of their industry. The indicator itself comes in as a figure that is either above or below 50.0. A PMI above 50.0 indicates a sector that is growing, whereas a PMI figure below 50.0 refers to an industry that is shrinking. PMI is a leading indicator as the implications of its findings have usually yet to trickle down into the broader economy.


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