The Predictive Power of PMIs

This podcast episode discusses the use of Purchasing Manager Indices (PMIs) as an economic indicator, particularly for investors in credit markets. PMIs are surveys of individuals in the manufacturing and services sectors that provide insights into current conditions and the direction of economic activity. PMIs can be a valuable tool for identifying turning points in the economy, as they often foreshadow changes in the broader economy and credit markets. Currently, manufacturing PMIs in the U.S. and Europe are indicating a positive outlook for credit markets, as they have recently been weak but are starting to improve.