A high reading indicates positive growth while a low one points to a contraction. The PMI data is very easy to analyze, where we only have to look at the number and compare it with the previous readings. A PMI reading above 50 indicates growth or expansion of the manufacturing sector. A reading of 50 indicates that the number of manufacturers reporting good business is equal to those stating business is not good. If the PMI index has been above this number for a period of time, it indicates an expansion of the overall economy. Any number under 50 indicates a contraction in the manufacturing sector and that most businesses are not expecting good business in the near future.

1. Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise.
2. Retail sales have gone from a series of monthly declines to grow 0.7% month over month, supported by growth in nominal wages and consumer lending.
3. The PMI features a headline number, indicating the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilization, employment, and inventories.
4. The vast majority of Purchasing Managers’ Index™ surveys are published by S&P Global (formerly Markit Economics and prior to that NTC Research), which compiles the surveys in over 40 countries.
5. A New Orders Index above 52.3 percent, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).

High interest rates and a slowdown in the key agricultural sector weighed on Latin America’s biggest economy. Agriculture was the main driver of the slowdown, contracting –3.3% versus the second quarter. Industrial output growth accelerated to 6.6% year over year in November (4.6% in October). By sector, output growth in the mining sector increased to 3.9% in November (2.9% in October), manufacturing output growth improved to 6.7% (5.1% in October), and the utilities sector saw output growth accelerate to 9.9% (1.5% in October). Meanwhile, the real estate market slump persisted, with housing property sales revenue declining –18.3% year over year in November (–14.3% in October). Commodity prices continued to fall in December, with the exception of precious metals.

The implications of the invasion are rapidly evolving and are inherently uncertain. As a result, this document and the data and analysis it sets out should be treated as a best-efforts perspective at a specific point in time, which seeks to help inform discussion and decisions taken by leaders of relevant organizations. The document does not set out economic or geopolitical forecasts and should not be treated as doing so. It also does not provide legal analysis, including but not limited to legal advice on sanctions or export control issues. The Institute for Supply Management’s Purchasing Managers Index, or PMI, came in at 49.1 for January, up from the 47.1 reading for December. Still, the reading means the U.S. manufacturing sector has contracted for 15 consecutive months.

InventoriesThe Inventories Index registered 46.2 percent in January, 2.3 percentage points higher than the seasonally adjusted 43.9 percent reported in December. An Inventories Index greater than 44.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars). The PMI is a key economic tool and is among the most reliable leading indicators of the U.S. economy. The index sheds insight into the business environment and also helps companies get a grasp on where the economy is headed. Manufacturing PMI®The U.S. manufacturing sector contracted in January, as the Manufacturing PMI® registered 49.1 percent in January, up 2 percentage points compared to December’s seasonally adjusted reading of 47.1 percent. This is the highest reading since October 2022, when the PMI® registered a seasonally adjusted 50 percent.

On the other hand, a low PMI Flash can be an indicator of economic slowdown or contraction, reflecting a decrease in business activity in the manufacturing and service sectors. This slowdown can lead to reduced business confidence and investment, potentially impacting employment rates negatively. The US S&P Global Composite PMI Flash (Purchasing Managers’ Index Flash) is a leading economic indicator providing an early estimate of the current month’s economic health. It’s a composite index, meaning it encompasses both the manufacturing and service sectors of the economy, providing a comprehensive snapshot of the US’s private sector’s performance. Purchasing managers’ indexes (PMI) are economic indicators derived from monthly surveys of private sector companies.

Coverage includes financial services, consumer services and all other business services. All services PMI are published by S&P Global and available to download via subscription. Originally compiled for manufacturing, S&P Global pioneered the extension of coverage to other sectors in the 1990s, including services, construction and retail. Institutional forecasts for Russia’s GDP growth this year remain level at 1.5–2.5%.

Company

The PMI Flash is calculated based on survey responses from senior purchasing executives at over 400 US companies. These companies represent all major parts of the economy, including manufacturing, construction, retail, and services. The survey https://traderoom.info/ covers a range of economic aspects, such as new orders, inventory levels, production, supplier deliveries, and employment. The Composite PMI is a monthly survey sent to senior executives at more than 400 companies in 19 primary industries.

Contents

Until then, we will see what impact the PMI data makes on the currency pair. Composite PMI is available on the official website of the Institute for Supply Management (ISM), which also provides a comprehensive analysis of the same. The data can also be found on some open-source economic websites and financial magazines. Flash PMI™ (Purchasing Managers’ Index™) data are published by S&P Global and are early estimates of the company’s final PMI numbers. The Flash PMI data are published approximately one week before final PMI data each month and are typically based on 85%-90% of total PMI responses received each month.

PMI growth is an indication of favorable changes in market conditions and can be seen as positive for the US dollar. The UK economy unexpectedly contracted in October, with all three main sectors reporting declines in output. GDP fell 0.3% between September and October, driven by declining services activity as well as contracting manufacturing and construction output, Office for National Statistics data show. Meanwhile, the UK CPI fell more than expected to 3.9% in November from 4.6% in October, with the largest downward contributions coming from transport, recreation and culture, and food and nonalcoholic beverages. Most countries have shown a flat trend in services in recent months, although India’s services PMI remains solidly in expansion territory despite declining to a 12-month low of 56.9, from 58.4 in October. In the US, the November services PMI edged up to 50.8, from 50.6 in October, while the eurozone services PMI rose slightly to 48.2 in November (47.8 in October).

Therefore, the PMI Flash doesn’t measure the level of output; instead, it indicates the market’s overall health. A high PMI suggests that the private sector, and therefore the economy, is growing, while a low PMI suggests a slowdown or contraction. With the world’s major central banks eager to assess changing economic conditions, December’s PMI data will provide an important assessment of the global economic and business environment. This is a diffusion index calculated from a question that asks for changes in the volume of business activity compared with one month previously.

PMI® Commentary and Analysis

These indexes therefore vary between 0 and 100 with levels of 50.0 signaling no change on the previous month. Readings above 50.0 signal an improvement or increase on the previous month. Readings below 50.0 signal a deterioration or decrease on the previous month. The greater the divergence from 50.0 the greater the rate of change signaled. In emerging economies, China exports rebound, but the real estate slump persists; India’s growth shines at 7.6%; Brazil cuts interest rate to 11.75%; Russia hikes interest rate to 16%. December’s Federal Open Market Committee (FOMC) meeting concluded with no new hikes in the current interest rate—this as the CPI showed promising figures throughout the month and with the labor market remaining strong.

View All Heavy Industry & Manufacturing

The Manufacturing PMI came in at 46.9% in May 2023, which was a drop from the 47.1% reported in April 2023. The monthly report indicated that there was a contraction in new orders and backlogs while how to find a programmer for your startup production and employment showed growth from the previous month. The PMI and relevant data produced from the monthly surveys by the ISM are critical decision-making tools for a variety of areas.

In addition, Lewis is responsible for overseeing the
production of various PMI reports in addition to ad-hoc research
and analysis. He joined S&P Global in 2019.Lewis holds a Bachelor of Science in Economics from Kingston
University, London and a Master of Science in Economics from the
University of Reading. Join Chief Business Economist, Chris Williamson and Economist Jingy Pan to get a timely update on the global economic landscape through the lens of the PMI®. The chart of the entire available history of the “S&P Global United States Composite Purchasing Managers Index (PMI)” macroeconomic indicator.

What is a flash PMI?

Only S&P Global national PMI data are used in updates of broader geographical PMI series such as the global PMI and eurozone PMI. The pound surged and gilts flipped to losses after stronger-than-expected UK private sector activity data led traders to temper their expectations of monetary easing by the Bank of England this year. About This ReportDO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. “Two of the six biggest manufacturing industries (Transportation Equipment; and Chemical Products) registered growth in January.

It is a survey-based indicator that is compiled and released each month by the Institute for Supply Management (ISM). The survey is sent to senior executives at more than 400 companies in 19 primary industries, which are weighted by their contribution to U.S. gross domestic product (GDP). Readings above 50 indicate that most of respondents positively characterize current business conditions. Global PMI data for manufacturing and services are calculated by weighting together the country indices using national manufacturing and services GDP weights (annual value added). Global Composite PMI data are then calculated by weighting together comparable global manufacturing and services indices using global manufacturing and services annual value added. In the third quarter, Brazil’s GDP rose 0.1% compared to the previous quarter and climbed 2.5% year over year.