A monthly survey of business managers that gives an early read on whether the economy is growing or shrinking.
The Purchasing Managers' Index surveys manufacturing or services business managers each month on whether new orders, production, and employment are rising or falling, then converts the results into a single number: above 50 signals expansion, below 50 signals contraction. Because it's based on a fast-turnaround survey rather than slower official government data, it's one of the earliest available reads on where the economy is heading each month, which is why it moves markets even though it's essentially just asking people who run businesses how things are going right now.
Part of the Open Bell Glossary — plain-English explanations of the terms that come up on the show. Browse every term.