12 Nov 2019
Purchasing Manager Index (PMI)
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The Purchasing Managers Index (PMI) is a measure of the prevailing direction of economic trends in manufacturing through its monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity.
When the PMI falls it indicates that manufacturers are scaling down production because they are expecting reduced sales which can indicate slower economic growth.
Is the current falling PMI repeating the past weakness of 2016 and 2012 which means that it is due to turn back up or will it fall further this time?
Click for chart.
The key for investors with all of this market noise is to remain invested according to your appetite for volatility and when fear and panic take hold during the next financial catastrophe, to take advantage by buying more quality assets at discounted prices.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.