Purchasing Managers Index: Difference between revisions

Purchasing Managers Index (view source)

985 bytes added , 21 February 2023

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 Thus, if 100% of the panel reported an improvement, the index would be 100.0. If 100% reported a deterioration, the index would be zero. If 100% of the panel saw no change, the index would be 50.0 (P<sub>2</sub> * 0.5).Therefore, an index reading of 50.0 means that the variable is unchanged, a number over 50.0 indicates an improvement, while anything below 50.0 suggests a decline. <ref>https://en.wikipedia.org/wiki/Purchasing_Managers%27_Index#cite_note-19</ref>
+The two principal producers of PMIs are the Institute for Supply Management (ISM), which originated the manufacturing and non-manufacturing metrics produced for the United States, and the S&P Global (from 2022 merger with IHS Markit), which produces metrics based on ISM's work for over 30 countries worldwide.
+=== ISM and S&P differences ===
+* S&P uses the following weights: production (0.25), new orders (0.30), employment (0.20), supplier deliveries (0.15), and inventories (0.10), while ISM attributes each of these variables the same weighting (0.2) when calculating the overall PMI
+* ISM's surveys cover all [[wikipedia:North_American_Industry_Classification_System|NAICS]] categories, and The S&P survey covers private sector companies, but not the public sector.<ref>https://en.wikipedia.org/wiki/North_American_Industry_Classification_System</ref>
+For the US specifically, the ISM PMI is the most popular among economist and investors to rely for the economic outllook.
 == References: ==