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Purchasing Managers' Index (National Association of Purchasing, PMI index) represents a summary report of surveying managers in the field of industry. PMI index is used to measure change of production output, the number of new industrial orders, inventories as well as operation speed of suppliers. The goal of this economic indicator is to provide the information about shaping of price policy, tendencies in business and broadly in the economy. PMI (otherwise called NAPM) is measured as percentage % from 1 to 100. Respondents to the survey answers simple questions. Choice of answers is usually limited by “yes”, “no” and “no change”. Taking into account the structure of questions, it is hard to escape a conclusion that psychological factors heavily impact index value, which can distort figures.
Popular article: Business Inventories
Gradual increase in the number of produced goods, component kits and semi-products in warehouses can implicitly tell about stagnancy. Publishing of this figure slightly impacts the Forex market. Nevertheless, upon steady tendency in its dynamics the currency is pressed which leads to drop down of the rate. This figure is published in the middle of every month at 08:30 EST (New York).
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