Issued by the Institute for Supply Management, these reports measure economic change month to month to illustrates trends in the industry. The data comes from monthly surveys submitted by purchasing managers in specific fields.
The PMI measures and tracks trends for the five following categories:
1. New orders from customers
2. Lead time for deliveries – how quickly orders are shipped
3. Inventory levels at participants
4. Production levels and back logs
5. Employment rates within industries
How We Use It:
We specifically review markets that we think will impact prices and availability of steel products, such as the manufacturing PMI which best reflects steel demand.
Any PMI index level of greater than 50 equates to expansion in that market, any PMI level of 50 equates to no change in that market and any PMI index level of below 50 equates to contraction in that market.
This information helps us better understand the fluctuations in supply and demand, as well as relevant history to predict how pricing will change based on lead times, supply problems and demand trends.