| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 52.0 | 52.0 to 52.1 | 51.9 | 53.1 |
| Manufacturing Index | 49.5 | 49.0 to 50.7 | 51.7 | 50.7 |
| Services Index | 52.4 | 51.5 to 52.8 | 51.2 | 53.4 |
Highlights
Flash PMI survey data for Germany showed a fall in the manufacturing index from 50.9 in February to 51.7 in March and a fall in the services index from 53.5 to 51.2. The composite index fell from 53.2 in February to 51.9 in March. Final data will be published early next month.
Market Consensus Before Announcement
The consensus sees the PMI composite flash at 52.0 in March versus 53.2 in the February final. Manufacturing PMI is seen at 49.5 in March flash versus 50.9 in February final. The services PMI is seen at 52.4 in the March flash versus 53.5 in February final.
Definition
The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector business activity by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. The flash data are released around ten days ahead of the final report and are typically based upon around 85 percent of the full survey sample. Results covering a range of variables including manufacturing output, employment, new orders, backlogs and prices are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The data are produced by S&P Global.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.