This week we start a new month and this means we get an insight into the views of purchase managers across the globe. A number of indexes reveal the state of their minds in construction, manufacturing, and services.
Can there ever be too much information (TMI) about the PMIs (purchase manager indexes)?
As Purchase Managers have a good insight into business conditions such as inventories, employment, prices, new orders, supplier deliveries, and production, they are well placed to give a good view of the country’s economic health.
Caixin Manufacturing PMI was 51 last month with a forecast 50.9 on Wednesday 1st March. Anything over 50 indicates a positive growth environment, while below 50 suggests contraction.
Manufacturing PMI is out on Wednesday 1st March at 9.30am GMT: last month was 55.9 and a slight drop to 55.7 is indicated. This is still strongly above the 50.0 line.
Construction PMI is out on Thursday 2nd March also at 9.30am GMT: last month dropped two points to 52.2 and things look about the same (52.1) according to pundits predicting Thursday’s figures.
Services PMI is out on Friday 3rd March at 9.30am GMT: a slight dip is forecast from 54.5 to 54.2.
ISM Manufacturing PMI at 3pm GMT on Wednesday 1st March is looking positive with a steady nudge upwards from 56.0 to 56.1 showing pundits expect businesses are feeling good about life.
ISM Non-Manufacturing PMI at 3pm GMT on Friday 3rd March has the same curve going from 56.5 to 56.6. This may be good for the economy but traders are more likely to react to Yellen’s speech scheduled for 6pm GMT.