Manufacturing: PMI Composite Index: Index as of

The purchasing manager's index, the headline indicator of the Institute for Supply Management (ISM), measures the composite index of five "sub-indexes" as follows: 25% production level, 30% new orders from customers, 15% supplier deliveries, 10% inventories and 20% employment level. Managers can rate each of the survey questions as better, same or worse conditions. The PMI, which ranges from 0 to 100, equals the percent of respondents voting "better" plus half of the percent of respondents voting "same." A PMI of 50 indicates that half voted "better" and half voted "worse." The "zones of discrimination" for the PMI: Less than 42 = potential recession, 42 to 49 = mildly strong expansion and 50 or higher = positively strong expansion. (Source: Investopedia)

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