The Purchasing Managers Index (PMI) is an economic indicator derived from monthly surveys of private sector companies. It is a measure of the prevailing direction of economic trends in the manufacturing and service sectors. The PMI is a survey-based economic indicator designed to provide a timely insight into changing business conditions in the goods-producing sector. The index shows trends in both the manufacturing and services sector and helps in determining whether the market conditions, as seen by purchasing managers, are expanding, contracting, or staying the same. The PMI incorporates various business aspects like new orders, production, and employment, offering a comprehensive view of sector performance. The PMI is based on responses from members of the ISM Business Survey Committee, which includes a range of industries diversified by the North American Industry Classification System (NAICS) and based on each industry’s contribution to U.S. GDP. The PMI is a composite index based on equal weights of the following five primary sub-indexes: New Orders, Production, Employment, Supplier Deliveries, and Inventories. The PMI is an important economic tool and is among the most reliable leading indicators of the U.S. economy.