Why should you care about PMIs?
PMIs tells us what is happening with private manufacturing companies and how it is affecting our economy. The index is a survey of select companies to provide investors with an indication of how the economy is performing. This index tracks the changes in manufacturing companies by surveying selected private companies on topics such as new orders, inventory levels, employment, and prices across the manufacturing sector. This is important because (1) Manufacturing is a very important sector of our economy due to the size of the industry, (2) It provides details on overall employment and whether people are getting jobs (3) It foreshadows global product and consumer demands – validating consumers purchasing habits.