Final Manufacturing PMI is an index calculated based on surveyed purchasing managers from the manufacturing industry. About 3000 managers are being asked to respond questions relative to general business conditions, new orders in the company, employment levels, hiring, etc, and, based on those information, an index is calculated. It is interpreted compared with the fifty level, values higher than fifty suggesting industry expansion, while values lower than the fifty level suggesting industry contraction.
It should be noted that subscribers of Thomson Reuters, the news agency, receive the information 2 min earlier than the general public, so if there is volatility to be seen in the market before the actual release, that is due to those subscribers trading the news.
It comes in two versions, flash and final, with the flash being more important as it is the first release.
The most important things to take into consideration when looking at the Final Manufacturing PMI are the following:
- release date: monthly, on the first business day after month ends;
- release time: 08:00 GMT, during London trading session;
- actual > forecast = positive for currency;
- actual < forecast = negative for currency;
- first tear data.