Description
The German Manufacturing Purchasing Managers' Index (PMI) is compiled by IHS Markit based on monthly surveys of purchasing managers from approximately 420 German manufacturing companies. A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 indicates contraction. This index is crucial for assessing the overall economic health and forecasting future economic activity, and it influences the European Central Bank's (ECB) monetary policy as well as corporate and investment strategies.
The Manufacturing PMI is composed of five main sub-indices: New Orders (30%), Output (25%), Employment (20%), Suppliers' Delivery Times (15%), and Stocks of Materials Purchased (10%).
The index is typically published on the first working day of each month.