Source Markit (latest release)
Measures Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry;
Usual Effect Actual > Forecast = Good for currency;
Frequency Released monthly, around 3 weeks into the current month;
Next Release Mar 20, 2015
FF Notes Above 50.0 indicates industry expansion, below indicates contraction. There are 2 versions of this report released about a week apart – Flash and Final. The Flash release, which the source first reported in May 2012, is the earliest and thus tends to have the most impact;
Why Traders
Care It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;
Derived Via Survey of about 600 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);