Purchasing Managers Index (PMI): Understanding Economic Health
The purchasing managers index is a tool that is used to gauge the strength of the economy overall. The data that is used to comprise this index is obtained by surveying 400 purchasing managers in the manufacturing industry. Here are the basics of the purchasing managers index and why it is important.
Every month, the Institute for Supply Management issues a survey to 400 purchasing managers. These managers are selected from different businesses in the manufacturing sector. The survey attempts to determine what the purchasing managers think about business.
The survey will ask the purchasing managers several questions about their businesses. They will look at several factors including the number of new orders, production level, speed of supplier deliveries, inventory and the level of employment of the business. The purchasing managers can say that things are worse than the previous month, better than the previous month or the same.
This particular index is released on the first business day of every month. Financial professionals and investors look at this index when determining the overall strength of the economy. If the index is above 50, things are considered to be looking good for the economy. If it is below 50, things are not quite as rosy.
-
Russell 3000 Index: Understanding the US Stock Market Leader
The Russell 3000 index is one of the most important financial indices that is monitored in the markets today. Here are the basics of the Russell 3000 index and why it is important. The Russell 3
-
EAFE Index: Understanding International Stock Performance | Morgan Stanley
The EAFE index (or Europe, Australasia, and Far East index) is a financial index that keeps track of international stocks. Here are the basics of the EAFE index and why it is significant. The EA
invest
- Index Funds: A Comprehensive Guide for Investors
- Advance-Decline Line: Understanding Market Sentiment & Trends
- Arms Index (TRIN): Understanding Short-Term Market Sentiment
- EAFE Index: Understanding Developed Market Performance
- Nikkei Index: Understanding Japan's Top Stock Market Indicator
- Price-Weighted Index Explained: How It Works & Examples
- Understanding the S&P 500: Top Holdings & Long-Term Performance
- Manager of Managers Funds: Diversified Investment Strategies
- Wilshire 5000 Index: Understanding the World's Largest Stock Market Index
-
NASDAQ Index Fund: A Comprehensive Guide for Investors
The NASDAQ index fund is a fund that is comprised of all of the stocks that trade on the NASDAQ exchange. Many investors put their money into this particular fund as a way to expose themselves t...
-
Equal-Weight Index Funds: A Comprehensive Guide
An equal-weight index fund provides you with an alternative form of investment. An equal-weight index fund is set up with different proportions. Here are the basics of the equal-weight index fun...