A Purchasing Manager Index (PMI) is basically the assessment of purchasing managers with regard to the business and economic environments. Managers in the services industry are asked to answer a survey which covers different aspects of their businesses from employment, production, new orders, prices, to inventories.
Their sentiments are then quantified and when the math whiz kids are done, they publish a headline figure for the services PMIs.
If the reading is below 50.0, it indicates that the services industry is contracting. Meanwhile, a reading higher than 50.0 would indicate that the industry is growing.
Why do they matter?
Central bankers, economists, industry analysts, businessmen, and traders pay close attention to services PMIs. Heck, who better to tell us how business conditions are than business managers themselves, right? Because of this, services PMIs are seen as reliable leading indicators of economic health.
Editors’ Picks
AUD/USD tumbles toward 0.6350 as Middle East war fears mount
AUD/USD has come under intense selling pressure and slides toward 0.6350, as risk-aversion intensifies following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY breaches 154.00 as sell-off intensifies on Israel-Iran escalation
USD/JPY is trading below 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price jumps above $2,400 as MidEast escalation sparks flight to safety
Gold price has caught a fresh bid wave, jumping beyond $2,400 after Israel's retaliatory strikes on Iran sparked a global flight to safety mode and rushed flows into the ultimate safe-haven Gold. Risk assets are taking a big hit, as risk-aversion creeps into Asian trading on Friday.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.
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