the full English name of p>PMI index is Purchase Management Index, and the Chinese translation is Purchasing Managers Index. PMI is a comprehensive economic monitoring index system released monthly. PMI business reports for manufacturing and non-manufacturing industries are released on the first and third working days of each month, which are much ahead of the statistical reports of other government departments, and the selected indicators are leading, so PMI has become a timely and reliable leading indicator for monitoring economic operation, and has been widely recognized by the government, business circles, economists and forecasting experts.

after the PMI is calculated, it can be compared with last month. If the PMI is greater than 5%, it means that the economy is rising, and vice versa. Generally speaking, the aggregated composite index of manufacturing industry is higher than 5%, which means that the whole manufacturing economy is growing, and less than 5% means that the manufacturing economy is declining.

PMI index system is of great significance in economic forecasting and business analysis for government departments, financial institutions, investment companies and enterprises. PMI index is highly correlated with GDP, and its turning point is often several months ahead of GDP, which is an important basis for government regulation, financial institutions and investment companies to make decisions. In addition, enterprises can judge the supply level and overall trend of the industry in time by using PMI, and analyze the dominant industries.