Purchasing Managers’ Indices (PMIs), produced by Markit, have become the key benchmark indicators for measuring growth in any given economy.
They move markets – fixed income, forex, futures and options – as they are watched closely by leading central banks around the world. Economists and fixed income analysts at investment banks, institutional asset managers, global macro funds and corporate treasury departments all need access to the data. PMIs also offer a valuable insight into the future direction of corporate earnings.
Key Features of PMIs
Data are produced very rapidly, and much faster than equivalent official data, often providing the first indication of economic trends each month. The PMIs provide a guide to future official economic data releases such as GDP.
Data cover all private sector economic activity in many countries, including the all-important service sectors. It is extremely difficult to secure effective services data elsewhere.
Data are produced using the same methodology in more than 20 countries, including all main developed economies and key emerging markets, offering uniquely accurate international comparisons.
Series provide reliable factual data on actual business conditions rather than opinion or confidence-based measurements.
PMI data are also available by ICB sector classification meaning PMI data relating to sector performance can be easily linked to other stock market-based datasets.
Headline PMI and Sub-indices
By surveying more than 16,000 companies around the world, every month, the PMIs represent the most comprehensive global economic survey available to professional investors.
There are two parts to the monthly PMI release; the first is the headline PMI number – designed to provide a snapshot of the health of the economy; the second is the sub-indices, or component level data. These sub-indices provide unrivalled early insight into key economic drivers such as inflation, exports, employment and inventories.
The Sub-indices Include:
Markit also produces other indicators derived from the sub-indices providing insights into capacity utilisation, productivity and GDP.