PMI Index level above 50 = expanding; below 50 = contracting. Table lists index levels and trends.
|PMI Index Level||Trending|
Bar chart showing manufacturing % increasing in least developed countries, decreasing elsewhere. Table cites percentages.
|Least developed countries||9.4%||11.1%|
|World (2000 and 2018)||19.2%||14.5%|
|Japan (2000 and 2018)||21.2%||20.7%|
Sources: Top chart: Bloomberg, IHS Markit, and Wells Fargo Investment Institute, as of September 30, 2021. Bottom chart: World Bank national accounts data and OECD National Accounts data files, as of December 31, 2020. Japan manufacturing as percentage of the economy data as of December 31, 2019. PMI = Purchasing Managers’ Index. GDP = gross domestic product. The PMI is an index developed from monthly business surveys used to monitor the condition of industries and businesses.
- The service industry was affected by the pandemic more than the manufacturing industry was. Support for manufacturing has come from a global shift to goods spending during periodic lockdowns. Added support will continue to come from bringing inventories into alignment with sales as supply-chain disruptions ease.
- The shift to a more services-oriented economy has left most of the global economy’s key players better-positioned for the reopening led by those same industries hit hardest during the pandemic.