What the Services Purchasing Managers Index means for your business
Services Purchaisng Managers Index
What is the Services Purchasing Managers Index?
Services Purchasing Managers Index is a report based on survey responses of executives from private sector service companies. Covering transportation & communication, financial, business, and personal services, computing & IT, hotels & restaurants. The index reports changes in sales, employment, inventories, and prices in these sectors.
An index level of 50 denotes no change from the previous month, while a level above 50 indicates growth and below 50 indicates contraction.
Why is the Services Purchasing Managers Index important?
This index provides clarity into business conditions of various markets. Because of the industries it observes, the Services Purchasing Managers Index can provide a detailed look into the health of the economy. For example when the Services Purchasing Managers Index reads above 50, it typically suggests strength in both the economy and the power of the U.S. dollar. Additionally, it can highlight how quickly certain private sector businesses are growing which can be indicators of inflation.
What should you do?
If you’re looking for a better understanding of grow within the private sector services, following the Services Purchasing Managers Index is a strong starting point. Majestic’s CORE Report follows the Services Purchasing Managers Index, along with other indicators every week to see where the market stands.
Source: TradingEconomics.com
