Level of a diffusion index based on surveyed purchasing managers;
Usual Effect
'Actual' greater than 'Forecast' is good for currency;
Frequency
Released monthly, about 5 days after the month ends;
Next Release
FF Notes
Above 50.0 indicates industry expansion, below indicates contraction. Source changed series from non-seasonally adjusted to seasonally adjusted as of Mar 2011;
Why Traders Care
It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;
Derived Via
Survey of about 175 purchasing managers, selected geographically and by sector of activity to match the economy as a whole, which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories;
