Description
The Eurozone Manufacturing Purchasing Managers' Index (PMI) is a vital economic indicator that measures the performance and health of the manufacturing sector within the Eurozone. Compiled by S&P Global (formerly IHS Markit), the index is based on monthly surveys of purchasing managers from around 3,000 manufacturing firms across the Eurozone.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 suggests contraction. The index is typically released on the first business day of each month, providing a timely snapshot of the manufacturing sector's health across the Eurozone.
The Manufacturing PMI is composed of five key sub-indices: New Orders, Output, Employment, Suppliers' Delivery Times, and Stocks of Purchases. The Suppliers' Delivery Times index is inverted in the calculation to ensure consistency with the other indices. This index is crucial for assessing the overall economic health and predicting future economic activity within the Eurozone, influencing monetary policy decisions by the European Central Bank (ECB) and guiding business and investment strategies.