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| Economic Forecast | |||||||||
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Business Systems Design & Software Services, Inc. is working on bringing you the most current information possible regarding the future of our economy using the Purchasing Managers Index (PMI)
 The PMI is a leading indicator with a good record of predicting the future economy. It is a composite index that is based on five major indicators including: new orders, inventory levels, production, supplier deliveries, and the employment environment. Each indicator has a different weight and the data is adjusted for seasonal factors. The Association of Purchasing Managers surveys over 300 purchasing managers nationwide who represent 20 different industries. A PMI index over 50 indicates that manufacturing is expanding while anything below 50 means that the industry is contracting. The PMI report is an extremely important indicator for the financial markets as it is the best indicator of factory production. The index is popular for detecting inflationary pressure as well as manufacturing economic activity, both of which investors pay close attention to. The PMI is not as strong as the CPI (Consumer Price Index) in detecting inflation, but because the data is released one day after the month it is very timely. Should the PMI report an unexpected change, it is usually followed by a quick reaction in stocks. One especially key area of the report is growth in new orders, which predicts manufacturing activity in future months. Contact us today to discuss how we can work with you to design a customized program to improve the profitability of your retail business. |
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