Purchasing managers' indices: the key questions answered
Explainer: PMI readings above 50 signal expansion, readings below 50 contraction.
PMI readings above 50 signal expansion, readings below 50 contraction.
Anyone looking into “Purchasing managers' indices” quickly encounters a wealth of figures and opinions. For a sober assessment it pays to go to primary sources: official statistics, publications from the responsible authorities and companies' own reports.
The key is to separate short-term swings from structural developments. Individual monthly readings can be distorted by one-off effects; trends over several quarters are more telling.
The debate around “Purchasing managers' indices” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.
Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.