Services PMI

Services PMI means a survey-based index that measures activity in the services sector. In simple terms, it shows whether service businesses are generally expanding or contracting. Services PMI is important because services make up a large part of many modern economies. Investors watch it to understand consumer demand, business activity, employment, and inflation pressure in services. For example, if Services PMI remains strong, it may suggest the economy is still resilient even if manufacturing is weak. Services PMI is not the same as Manufacturing PMI. Services PMI focuses on service businesses, while Manufacturing PMI focuses on factories and goods production.