Manufacturing PMI

Manufacturing PMI means a survey-based index that measures activity in the manufacturing sector. In simple terms, it shows whether factories are generally expanding or contracting. Manufacturing PMI is important because it gives investors an early look at orders, production, employment, inventories, and supplier conditions. A reading above 50 often suggests expansion, while below 50 suggests contraction. For example, if Manufacturing PMI falls below 50, investors may worry that factory activity is weakening. Manufacturing PMI is not a direct measure of total GDP. It focuses on manufacturing, which is only one part of the economy.