The Purchasing Managers’ Index (PMI) is an economic indicator released by the Institute for Supply Management by month. It evaluates the business conditions of the manufacturing and service sectors of a country. The PMI summarizes whether purchasing managers believe that market conditions are expanding, staying the same, or shrinking. The PMI is used to provide company decision-makers, analysts, and investors with information about changes in business conditions. A reading above 50 indicates the sector is expanding, while a reading below 50 points indicates the sector is contracting.