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diff --git a/Finance/Fundamentals/ISM Purshasing Manager Index (PMI).md b/Finance/Fundamentals/ISM Purshasing Manager Index (PMI).md new file mode 100644 index 0000000..f904c69 --- /dev/null +++ b/Finance/Fundamentals/ISM Purshasing Manager Index (PMI).md @@ -0,0 +1,31 @@ + +PMI = (P1 x 1) + (P2 x 0.5) + (P3 x 0) + +Where: +- P1 = % of answers reporting improvements +- P2 = % of answers reporting no change +- P3 = % of answers reporting a deterioartion + +The PMI is based on a survey of supply chain managers, the survey ask if during last month business was the same, better or worse in 5 sectors. + + | Surveys | Weight | + | Production Levels | 20% | + | New Orders | 20% | + | Employement Levels | 20% | + | Supplier Deliveries | 20% | + | Inventories | 20% | + | PMI | 100% | + + +# How to follow the PMI # + +- PMI above 50 and growing Long (Strong) bias +- PMI above 50 and slowing Long (Weak) bias +- PMI below 50 and slowing Short (Strong) bias +- PMI below 50 and growing Short (Weak) bias +- PMI peak above 50 Short (Weak) bias +- PMI peak below 50 Long (Weak) bias + + +Source: +The Institute of supply management (ISM) release its PMI on the 1st business day of each month. |