Why in news?

October services signals uptick on improved demand in Purchasing Managers’ Index(PMI)

Highlights:

Purchasing Managers’ Index

• It is an index of the prevailing direction of economic trends in the manufacturing and service sectors.
• It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting.
• The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investor
• The PMI is based on a monthly survey of supply chain managers across 19 industries, covering both upstream and downstream
• The value and movements in the PMI and its components can provide useful insight to business decision makers, market analysts, and investors, and is a leading indicator of overall economic activity in the U.S.
• Released by : Institute for Supply Management (ISM).
• Performance : The headline PMI is a number from 0 to 100. Above 50 IS expansion and under 50 represents a contraction, and a reading at 50 indicates no change