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

The Manufacturing Purchasing Managers Index (PMI) is released by IHS Markit monthly based on data collected through surveys of purchasing managers employed in manufacturing companies.

The survey takes place in the second half of the month. The survey participants are asked to answer various questions about business conditions, employment, prices, inventories, etc. Based on received data, a diffusion index is calculated for each variable. This results from the sum of the percentage of companies reporting an improvement and half the percentage of those reporting no change in the situation.

This index has a reference value of 50.0. When the index is above this threshold, it indicates that there is an expansion of the industrial sector. When the index is below the threshold, it indicates that there is a contraction of the industrial sector.

The indices are seasonally adjusted. The original data are not subject to revision after their first publication. Seasonally adjusted data, on the other hand, can be revised if necessary due to updated seasonal adjustment factors.

Purchasing managers are considered to be among the first to see changes in industry sentiments and therefore the PMI is considered to feature a headline number and to provide insights into other key economic drivers such as GDP, inflation, employment, etc.

In case the published value is above the expected one, one could assume an appreciation of the Euro. In the event that the published value is below that expected, it could be assumed that the Euro will be depreciated and the Euro quotes will move accordingly.