Tomorrow, preliminary Purchasing Managers’ Indexes (PMIs) will be released globally. This will be the world’s first significant economic data since the coronavirus has gone global.
According to Investopedia, the PMI is an index of the prevailing direction of economic trends in the manufacturing and service sectors. A reading of above 50 represents an expansion, while a reading of under 50 indicates contraction.
Over the past month, the coronavirus has wreaked havoc on many global economies, resulting in factory shutdowns, store closures and laid off workers. The flash PMIs will give us a look at how bad the economy has been since early March, when February’s numbers were finalized. Many countries were teetering around the 50 level before the pandemic. Now, many have likely fallen into contraction territory. Below are some of the more important expectations for tomorrow’s PMIs: