2018 Economic Calendar
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Eurozone : PMI Services Index  
Definition
The Services Purchasing Managers' Index (PMI) provides an estimate of private sector services business activity for the previous month by using information obtained from a representative sector survey incorporating around 2,0000 companies. Results 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). Produced by Markit, original survey data are collected from a representative panel of around 2,000 private service sector firms. National figures are included for Germany, France, Italy, Spain and the Republic of Ireland. These countries together account for an estimated 78 percent of Eurozone private sector services output

Why Investors Care
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 ISM non-manufacturing index in the U.S. and the Markit Services PMIs elsewhere, 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.

The Markit PMI services data give a detailed look at the services sector, how busy it is and where things are headed. The indexes are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries (including the European Central Bank) use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.

Frequency
Monthly


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