JustChartsWhat Is PMI? How Purchasing Managers’ Index Data Moves Markets
A PMI (Purchasing Managers’ Index) is a monthly survey of company purchasing managers about orders, output, employment and prices. A reading above 50 means activity is expanding; below 50 means it is contracting. Because PMIs come out early each month, they are one of the first signals of how an economy is doing, and they move currencies and stock indices.
Key facts
- 50
- dividing line between expansion and contraction
- ISM Manufacturing (US)
- 1st business day, 10:00 a.m. New York time
- ISM Services (US)
- 3rd business day, 10:00 a.m. New York time
- Flash PMIs
- S&P Global preliminary readings, late in the month
- Watch inside
- new orders, employment, prices paid
How a PMI is calculated
Companies answer whether things like new orders, output and employment were higher, the same or lower than the previous month. The answers are combined into a diffusion index: 50 means as many firms reported improvement as deterioration.
The main PMIs
| Survey | Covers | Timing |
|---|---|---|
| ISM Manufacturing | US factories | 1st business day of the month |
| ISM Services | US services | 3rd business day of the month |
| S&P Global flash PMIs | US, eurozone, UK, Japan, Australia and others | Around the 3rd–4th week of the month |
| Final PMIs | Same economies | First business days of the next month |
| China official PMI | China (National Bureau of Statistics) | End of the month |
What traders look at
- Headline vs forecast and vs 50 — a move across 50 gets attention.
- New orders — a leading indicator of future activity.
- Prices paid — an early inflation signal that can make central banks more hawkish.
- Employment — hints ahead of the jobs report.
How PMIs move markets
Strong PMIs tend to support the currency and stock index of that economy; weak ones weigh on them. Commodity currencies such as AUD often react to China’s PMIs, and industrial metals like copper and silver react to global manufacturing data.
Frequently asked questions
What does a PMI above 50 mean?
That activity is expanding compared with the previous month. Below 50 means it is contracting.
What is a flash PMI?
A preliminary PMI based on most survey responses, published about a week before the final figure. Markets usually react more to the flash release.
Which PMI matters most?
For the US, the ISM Manufacturing and Services PMIs; globally, the flash PMIs for the eurozone, UK and US, and China’s PMIs for commodity markets.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
See upcoming PMI releasesThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.