Economic IndicatorsAdvanced📖 4 min read

Services PMI

Health check for the service-based economy.

Sector Share
~70-80% of GDP
Components
New Orders, Employment

Similar to the manufacturing equivalent, the Services PMI tracks the service sector (finance, hospitality, tech). In developed economies, this often accounts for the vast majority of GDP.

Services vs. Manufacturing

While manufacturing is volatile, the service sector is usually more stable. However, a drop in Services PMI is a strong recession warning.

Key Takeaways

1

Covers the largest part of modern economies.

2

Includes IT, banking, and tourism.

3

Critical for confirming broad economic trends.

Related Terms

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