Source Markit (latest release)
Measures Level of a diffusion index based on surveyed purchasing managers in the services industry;
Usual Effect Actual > Forecast = Good for currency;
Frequency Released monthly, on the third business day after the month ends;
Next Release May 5, 2014
FF Notes Above 50.0 indicates industry expansion, below indicates contraction;
Why Traders
Care It's positively correlated with interest rates - early in the economic cycle an increasing supply of money leads to additional spending and investment, and later in the cycle expanding money supply leads to inflation;
Derived Via Survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories;
Acro Expand Purchasing Managers' Index (PMI);
Source Markit (latest release)
Measures Level of a diffusion index based on surveyed purchasing managers in the services industry;
Usual Effect Actual > Forecast = Good for currency;
Frequency Released monthly, on the third business day after the month ends;
Next Release May 5, 2014
FF Notes Above 50.0 indicates industry expansion, below indicates contraction;
Why Traders
Care It's positively correlated with interest rates - early in the economic cycle an increasing supply of money leads to additional spending and investment, and later in the cycle expanding money supply leads to inflation;
Derived Via Survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories;
Acro Expand Purchasing Managers' Index (PMI);
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