PMI = (P1 x 1) + (P2 x 0.5) + (P3 x 0)

Where:
- P1 = % of answers reporting improvements
- P2 = % of answers reporting no change
- P3 = % of answers reporting a deterioartion

The PMI is based on a survey of supply chain managers, the survey ask if during last month business was the same, better or worse in 5 sectors.

 | Surveys             | Weight |
 | Production Levels   | 20%    |
 | New Orders          | 20%    |
 | Employement Levels  | 20%    |
 | Supplier Deliveries | 20%    |
 | Inventories         | 20%    |
 | PMI                 | 100%   |
 
 
# How to follow the PMI #

- PMI above 50 and growing	Long  (Strong) bias
- PMI above 50 and slowing	Long  (Weak)   bias
- PMI below 50 and slowing	Short (Strong) bias
- PMI below 50 and growing	Short (Weak)   bias
- PMI peak above 50		Short (Weak)   bias
- PMI peak below 50		Long  (Weak)   bias


Source:
The Institute of supply management (ISM) release its PMI on the 1st business day of each month.