Purchasing Managers' Index (PMI)
FundamentalsA survey-based gauge of business activity — above 50 signals expansion, below 50 contraction — watched as an early economic signal.
The Purchasing Managers' Index is a survey-based indicator of business conditions in the manufacturing or services sector, with a reading above 50 signaling expansion and below 50 signaling contraction. Because it's released earlier than many official statistics, PMI is closely watched as an early read on economic momentum.
A string of PMI readings moving further from 50 in either direction often shifts interest-rate expectations, and with them the currency, well ahead of slower-moving GDP data.