The Purchasing Manager's Index is a comprehensive index. According to internationally accepted practices, it consists of five diffusion indices, namely, new orders index (referred to as orders), production index (referred to as production), employee index (referred to as employees),

It is weighted by the supplier delivery time index (referred to as delivery) and the main raw material inventory index (referred to as inventory).

The PMI index calculation formula is as follows: PMI = orders × 30% + production × 25% + employees × 20% + distribution × 15% + inventory × 10%. The purchasing managers index is expressed as a percentage, and 50% is often used as the strength of the economy.

The dividing point: when the index is above 50%, it is interpreted as a signal of economic expansion.

When the index is below 50%, especially when it is very close to 40%, there are worries about economic depression.

It is a very important subsidiary indicator among leading indicators.

In addition to the focus on the overall index, the paid price index and received price index in the purchasing managers' index are also regarded as a type of price indicators, and the employment index is more commonly used to predict the unemployment rate and non-agricultural employment population.

Performance.

The economic indicator ISM Manufacturing Index (Institute of Supply Management Manufacturing Index) is the most influential statistical report released by the private sector.

This market-driving report was released by the Institute for Supply Management.

Its full name is the Institute for Supply Management (ISM), an organization based in Tempe, Arizona that represents corporate purchasing brokers nationwide.

It publishes two key surveys each month, the first based on assessments from manufacturing industry purchasing brokers and the second drawn from their non-manufacturing or service industry counterparts.

It is the manufacturing survey report that captures most of the attention of financial markets and the press.

Procurement brokers are at the forefront of monitoring production activity, and product manufacturing is highly sensitive to the ebbs and flows of broader economic activity.

The ISM Purchasing Brokers Index is known for its timeliness, with survey results released on the first working day of each month.

Impact on exchange rates For each component, the ISM extracts the proportion that sees active ordering and adds half of the proportion that sees no change.

If the result is an index above 50, it means the manufacturing sector is growing; below 50%, it means contraction; and an index of 50 means no change.

Consumer Confidence Index (CCI) Consumer Confidence (also known as Consumer Sentiment) refers to consumers’ opinions on employment, income, prices, interest rates and other issues based on the economic development situation of a country or region.

An opinion and expectation derived from comprehensive judgment.

In many countries, measures of consumer confidence are considered a necessary complement to aggregate consumption.

The Consumer Confidence Index (ICS) is an indicator that reflects the strength of consumer confidence. It comprehensively reflects and quantifies consumers’ evaluation of the current economic situation and subjective feelings about economic prospects, income levels, income expectations and consumer psychology, and predicts economic trends.

It is a leading indicator of consumption trends and an indispensable basis for monitoring changes in the economic cycle.

The consumer confidence index consists of the consumer satisfaction index and the consumer expectations index.

The consumer satisfaction index and consumer expectations index are composed of a number of secondary indicators respectively: satisfaction with income, quality of life, macroeconomics, consumer spending, employment status, purchase of durable consumer goods and savings, and expectations for the next year and the next two years.

Expectations for changes in home purchases and renovations, car purchases, and stock market changes in the next six months.

The calculation method is that the consumer satisfaction index and consumer expectation index are respectively composed of some secondary indicators: satisfaction with income, quality of life, macroeconomics, consumer spending, employment status, purchase of durable consumer goods and savings, and the level of satisfaction in the next year.

Expectations and expectations of changes in the purchase of houses and decorations, car purchases and the stock market in the next two years in the next two years.

Respondents will mainly be asked about their feelings about the "current economic climate" and "current employment situation", and whether they think "very good", "average" or "poor". At the same time, they will also be asked about "the economic climate in six months."

Questions such as "situation", "employment situation in six months", and "income in six months" indicate the belief that "it will be better", "the same as now" or "worse".

The trend of increase or decrease in the proportion of different opinions on each issue is the focus of observation.

The index uses 1985 as the base period.