U.S. Composite PMI

Composite PMI is a variation of the purchasing managers’ index that indicates the well-being of both manufacturing and non-manufacturing sectors. Manufacturing in this case is getting 60% of the final weight. The index is calculated monthly based on the data provided by 1000 companies. The main purpose of the PMI is to provide key decision makers — company owners and managers — with adequate and up-to-date information on business conditions. The PMI value fluctuates between 0 and 100. A reading above 50 represents expansion of the manufacturing sector, below 50 — a contraction. If the manufacturing is expanding, the general economy is expected to do the same and vice versa. The PMI of 50 apparently indicates no change.
The United States Composite PMI Index
Composite PMI in the United States contracted from 53.6 in May 2017 to 53 in June 2017. Although for the last twelve month the reading remained in the “above-50” zone, the contraction cannot be completely excluded from future forecasts. However, the outlook for this indicator is currently positive. Business optimism and new open positions prove there is still room for development and growth in the domestic market.