Economic IndicatorsAdvanced📖 5 min read

Manufacturing PMI

Purchasing Managers' Index for the factory sector.

Threshold
50.0
Meaning
>50 Expansion, <50 Contraction

The Manufacturing PMI is a diffusion index summarizing economic activity in the manufacturing sector. It is derived from monthly surveys of private sector companies.

The Magic Number 50

A reading above 50 indicates expansion of the manufacturing sector compared to the previous month; below 50 represents contraction.

Key Takeaways

1

Highly sensitive leading indicator.

2

Impacts commodity prices.

3

Global standard for industrial health.

Related Terms

Apply This Knowledge

Ready to put Manufacturing PMI into practice? Use our tools to analyze your portfolio and explore market opportunities.

This content is also available on our main website for public access.

0:00 / 0:00