Question

why purchasing mangers' index is importantly or valued to the economy?

Answer 1

Ans.

Purpose of purchasing managers index is to give sufficient important information about the business condition , which is necessary for the market analyst , decision makers and investors.

It helps in knowing the current market condition whether it is expanding , staying constant or contracting or reducing.

PMI values are derived from doing monthly surveys.

PMI ( purchasing manager index ) is important and valued in the economy because -

1. Provide us information about the market condition
2. Act as a overall indicator of the economy activities which are taking place in a country , U.S in general.
3. Also helps in getting an idea of the future demand of the market , and suppliers to the manufacturer's takes decision on the basis of PMI.

Note - Annual budget , Staffing levels can be managed by the help of PMI , by a company, and also cash flow can be forcasted.

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