Purchasing Managers' Index - PMI

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What is the 'Purchasing Managers' Index - PMI'

The Purchasing Managers' index (PMI) is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

BREAKING DOWN 'Purchasing Managers' Index - PMI'

A PMI of more than 50 represents expansion of the manufacturing sector, compared to the previous month. A reading under 50 represents a contraction, while a reading at 50 indicates no change. Prior to September 1, 2001, the acronym (PMI) stood for Purchasing Managers' Index. The Institute of Supply Management (ISM) now uses only the acronym, PMI. Although the ISM publishes several indexes, the PMI is the most widely followed and is sometimes referred to as the ISM index.

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RELATED FAQS
  1. What are the different types of private mortgage insurance (PMI)?

    Private mortgage insurance (PMI) is an insurance policy that protects lenders from the risk of default and foreclosure, and ... Read Answer >>
  2. Why do I need to pay private mortgage insurance (PMI)?

    The extra interest payments caused by private mortgage insurance may seem excessive, but there's a good reason lenders need ... Read Answer >>
  3. On average, what can I expect my private mortgage insurance (PMI) rate to be?

    Learn the several factors that come into play when insurance companies determine the private mortgage insurance rate for ... Read Answer >>
  4. Do FHA loans have private mortgage insurance (PMI)?

    Learn in which instances PMI is required for your FHA loan. Find out when your PMI is no longer necessary and when your lender ... Read Answer >>
  5. Why would a homebuyer need to take out PMI (private mortgage insurance)?

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  6. What is PMI, and does everyone need to pay it?

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