S&P Global Italy Composite Purchasing Managers Index (PMI)

Composite PMI is released by IHS Markit monthly. The indicator is based on monthly surveys of purchasing managers and is configured as a summary report of changes in the working conditions of private companies in the manufacturing and services sectors.

Purchasing managers can sometimes track changes in market conditions earlier than other company employees, since purchases precede a company's production activity, so those among the first to notice the changes are those responsible of purchases.

Markit PMI includes only information from private companies, and the purchasing managers complete a questionnaire where the basic parameters of their work are evaluated, namely entry and exit prices, employment, production, new orders, etc. Survey participants provide relative estimates, that is, if the data is up, or if the data is down or if the data remains the same.

Other subindices are calculated on the basis of these responses and these underlying indices characterize employment, inflation and other important indicators of economic activity.

Each answer is weighted in accordance with the size of the company in which the survey is carried out, and therefore a major contribution to the calculation of the indicator comes from large companies.

This indicator is seasonally adjusted. Data over 50 indicate that most interviews positively characterize the commercial conditions of the moment, while data below 50 indicate the worsening of commercial conditions.

PMIs are among the most popular indices followed by analysts very carefully. The indicator can anticipate changes in commercial activity in Italy's entire private sector, and is interpreted as a main indicator for production and inflation analyzes.

PMI growth is an indication of favorable market conditions and can be seen as positive for the euro quotes.