PMI, or the purchasing manager’s index, is an important, forward-looking indicator of the economic health of the manufacturing sector. The global PMI reading for the month of May fell slightly to 53.1, which could have important implications for commodities one or three months out. Frank Holmes details how commodities such as copper and oil historically rise or fall if the manufacturing PMI crosses above or below its three-month moving average.
For Frank’s full explanation, watch the video below!
Want to learn more about PMI? Read Frank’s blog post, This Oil Rally Could Have Much Further to Go.
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The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
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Certain materials in this commentary may contain dated information. The information provided was current at the time of publication.
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