PMI™ Glossary
July 2017

Confidential | Copyright © 2017 IHS Markit Ltd

PMI GlossaryA
ACTIVITY (BUSINESS – CONSTRUCTION/SERVICES)ASEAN MANUFACTURING PMIThe ASEAN Manufacturing PMI (Purchasing Managers' Index) is produced by IHS Markit and isbased on original survey data collected from a representative panel of around 2100
manufacturing firms. National data are included for Indonesia, Malaysia, Myanmar, thePhilippines, Singapore, Thailand and Vietnam. Taken together, these countries account for an
estimated 98% of ASEAN manufacturing activity.

ASIA SECTOR PMI

The Asia manufacturing, services and whole economy PMI survey data have been analysed at
sector level, using IHS Markit sector definitions.

Asia IHS Markit Sector PMI data coverage

Tier 2
GroupsBasic Materials

Consumer Goods

Tier 3
Sectors
Chemicals
Resources

Forestry & Paper Products
Metals & Mining

Automobiles & Auto Parts
Beverages & FoodHousehold & Personal Use Products

Consumer Services
Financials
Banks
Insurance
Real Estate
Healthcare
Healthcare Services
Pharmaceuticals & Biotechnology
Industrials
Industrial Goods
Industrial Services

Technology

Tier 4Sub-sectors

Machinery & Equipment
Construction Materials
Commercial & Professional Services
General Industrials

Transportation
Technology Equipment
Software & Services|2

PMI Glossary

AUSTRALIA MANUFACTURING PMIThe Commonwealth Bank Manufacturing PMI is based on data compiled from monthly replies toquestionnaires sent to a representative panel of purchasing executives in over 400 private sector
manufacturing firms in Australia. The panel is stratified by GDP and company workforce size.

AUSTRALIA SERVICES PMIThe Commonwealth Bank Services PMI is based on data compiled from monthly replies toquestionnaires sent to a representative panel of purchasing executives in over 400 private sector
services firms in Australia. The panel is stratified by GDP and company workforce size.

AUSTRIA MANUFACTURING PMIThe Austrian Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in 300 industrial companies in Austria. The panel isstratified by GDP and company workforce size.

B

BACKLOGS (MANUFACTURING/SERVICES)

BRAZIL MANUFACTURING PMIThe Brazil Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in around 350 manufacturing companies in Brazil.
The panel is stratified by GDP and company workforce size.

BRAZIL SERVICES PMIThe Brazil Services PMI Report uses a panel of around 350 regularly participating companies tomonitor trends in business conditions in the Brazilian private sector services economy. The panel
has been carefully selected to accurately replicate the true structure of the Brazilian services
economy.

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PMI Glossary

BROAD MANUFACTURING SECTORSAs well as producing overall manufacturing indices, IHS Markit is able to produce similar data
series for three broad manufacturing sectors (consumer goods, intermediate goods andinvestment goods). The data are derived from the national manufacturing survey panels.

The broad manufacturing sector data are currently available for France, Germany, Italy, Spainand the UK.

BUSINESS EXPECTATIONS (CONSTRUCTION/SERVICES)CCAPACITY UTILISATION INDEX SERIESIHS Markit have derived an indicator of capacity utilisation from existing PMI data. This has beenachieved by using a weighted combination of the backlogs of work and suppliers’ delivery times
indices (inverted) from national surveys.

Backlogs of work is a good indicator of capacity utilisation, as higher levels of unfinished work
should logically indicate that firms are struggling to cope with their current workloads and, assuch, are already working at or near to full capacity. The inverse should logically be the casewhen backlogs of work are falling.
Delivery times, in turn, can be used as a useful gauge to the pressure being placed on suppliers’
capacity. Although a number of different factors can affect average supplier lead-times, demand
for a company’s products would be the most consistently significant determinant of suppliers’
capacity utilisation and in turn, their ability to meet agreed delivery schedules. Slower delivery
times should typically point to high capacity utilisation rates at suppliers. Faster delivery times
should typically signal the opposite.
CAPACITY UTILISATION – AVAILABLE COUNTRIESIHS Markit has derived capacity utilisation series for the following 23 countries/economic regions:



UK



GermanyFrance|4

PMI Glossary



Italy



Eurozone



Spain



Hong Kong

Turkey

Netherlands



Greece

Austria

Czech RepublicPoland

Russia

Ireland



Japan



China



European Union

Brazil

Global



India



South Korea



TaiwanCHINA MANUFACTURING PMIThe China Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 500 industrial companies in China. The
panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on
the regional and industry contribution to Chinese industrial production.

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PMI Glossary

CHINA SERVICES PMIThe China Services PMI is based on data compiled from monthly replies to questionnaires sent topurchasing executives in over 400 private service sector companies. The panel has been
carefully selected to accurately replicate the true structure of the services economy.

CONSTRUCTION INDICESIHS Markit’s national construction surveys use identical methodologies and collect questionbased data to produce the following diffusion indices:

Construction PMI – Total Construction Activity



Housing Activity Index

Commercial Activity Index

Civil Engineering Activity Index

New Orders Index

Employment Index

Suppliers’ Delivery Times Index

Quantity of Purchases Index

Input Prices Index

Sub-Contracting Indices

Future Construction Activity

CONSTRUCTION PMI

Unlike the Manufacturing PMI, the Construction PMI is not a weighted composite index. Rather, it
is a seasonally adjusted index designed to measure total construction activity. The index is
derived from the question that asks respondents to compare the level of total construction activity
with the situation one month ago.

CONSTRUCTION QUESTIONNAIRES

The following questions are asked of respondents participating in the PMI construction surveys:|6

PMI Glossary

Total Construction Activity

Total construction activity compared with the situation one month ago, with respondents asked toprovide a breakdown for the following three types of activity:

HousingCommercial

Civil Engineering

Sub-contracting

Respondents are asked to compare the current situation for the following four variables with thesituation one month ago:

Sub-contractor usage

Quality of sub-contractors



Availability of sub-contractors



Rates charged by sub-contractors

New Orders

The level of new orders received (in units, not money) this month compared with the situation one
month ago. Domestic and export orders are included in this definition.

Quantity of Purchases

The volume or number of items purchased this month compared with the situation one monthago.

Employment

The level of full time employment this month compared with the situation one month ago. For the
purpose of calculation it is agreed that two part time employees should be treated as one full time
employee. Seasonal hiring of employees is excluded in this definition.

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PMI Glossary

Input Prices

Average prices of all goods purchased (volume weighted) this month compared with the situation
one month ago.
Suppliers’ Delivery Times

The average length of time agreed to deliver the goods this month compared with the situation
one month ago.

Business Expectations

Whether business activity levels will be higher, the same or lower than current levels in 12
months’ time.

CZECH REPUBLIC MANUFACTURING PMIThe Czech Republic Manufacturing PMI is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 300 industrial companies in the Czech
Republic. The panel is by GDP and company workforce size.

D

DENMARK MANUFACTURING PMIThe Danish Manufacturing PMI is produced by DILF using a methodology identical to that used
by IHS Markit. For more information go to www.dilf.dk

DEVELOPED MARKETS PMIDeveloped Markets PMI data are available at the Manufacturing, Services and Composite levels.
The countries classed as Developed Markets are:

Australia, Austria, Canada, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan,
Netherlands, Singapore, South Korea, Spain, Taiwan, United Kingdom, United States|8

PMI Glossary

DIFFUSION INDICESThe percentages of survey respondents reporting an increase, no change or decrease for eachsurvey variable are converted into a single-figure ‘diffusion index’ according to the following
formula:INDEX=P1*1+P2*0.5+P3*0
P1=Percentage number of answers that reported an improvement.
P2=Percentage number of answers that reported no change.
P3=Percentage number of answers that reported a deterioration.
Thus, if 100% of the panel reported an improvement the index would be 100.0. If 100% reported
a deterioration the index would be zero. If 100% of the panel saw no change the index would be
50.0 (P2 * 0.5).

DUBAI
The Dubai Economy Tracker is based on the Purchasing Managers’ Index (PMI) series, and is an
economic indicator compiled from monthly surveys of carefully selected companies in Dubai. It
tracks variables such as output, new orders, employment and prices across the economy as awhole, with sub-sector available for three key areas of the economy (travel & tourism,
construction and wholesale & retail).

E
EGYPT WHOLE ECONOMY PMIThe Egypt PMI Report is a monthly publication, researched and published by IHS Markit,
featuring original research data from a survey of around 450 private sector companies operatingin Egypt. The companies have been carefully selected to represent the true structure of theEgyptian economy, including manufacturing, services, construction and retail. The panel isstratified by Standard Industrial Classification (SIC) group, based on industry contribution to GDP.

EMERGING MARKETS INDEX (EMI)

Emerging Markets PMI data are available for manufacturing, services and composite. The
countries classed as Emerging Markets are as follows:
Brazil, China, Czech Republic, Egypt, India, Indonesia, Kenya, Lebanon, Malaysia, Mexico,
Nigeria, Philippines, Poland, Russia, Saudi Arabia, South Africa, Thailand, Turkey, United ArabEmirates, Vietnam

EMPLOYMENT (CONSTRUCTION / MANUFACTURING / SERVICES)|9

PMI Glossary

EUROPE SECTOR DATAThe EU manufacturing, services and construction PMI survey data have been analysed at sector
level, using IHS Markit sector definitions.

EUROPE IHS Markit Sector PMI data coverage

Tier 2
GroupsBasic Materials

Consumer Goods

Tier 3
Sectors
Chemicals
Resources

Tier 4Sub-sectors
Forestry & Paper Products
Metals & Mining

Automobiles & Auto Parts
Beverages & Food

Food
Beverages

Household & Personal Use Products
Consumer Services Media
Tourism & Recreation
Financials
Banks
Other Financials
Real Estate
Healthcare
Healthcare Services
Pharmaceuticals & Biotechnology
Industrials
Industrial Goods
Machinery & Equipment
Construction Materials
Industrial Services
Commercial & Professional Services
Construction & Engineering
General Industrials
Transportation
Technology
Technology Equipment
Software & Services

EUROPE PMI survey coverage

Austria
Czech Republic
FranceGermany
GreeceIreland
Italy
Netherlands
PolandSpain
United Kingdom

Manufacturing
●
●
●
●
●
●
●
●
●
●
●

Services

Construction

●
●

●
●

●
●

●
●

●
●

●

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PMI Glossary

PMI Question Coverage for Sectors

Manufacturing

Services equivalent

Construction equivalent

OutputBusiness Activity

Total Activity

New Orders

New Business

New Orders

New Export Orders

X

X

Backlogs of Work

Outstanding Business

X

Employment

Employment

Employment

Output Prices

Prices Charged

X

Input Prices

Input Prices

Input Prices

Suppliers’ Delivery Times

X

Suppliers' Delivery Times

Stocks of Finished Goods

X

X

Quantity of Purchases

X

Quantity of Purchases

Stocks of Purchases

X

X

Future Output

Future Activity

Future Activity

PMI

X

X

EUROZONE COMPOSITE INDICESThe eurozone manufacturing and eurozone service sector data are weighted together to produce
the overall eurozone composite indices.

The weights are derived from the relative importance of the manufacturing and service sectors(for those sectors covered by the PMI surveys) across the eurozone as a whole, based on grossvalue added data from Eurostat.

Seven Eurozone Composite indices are currently produced:Eurozone Composite Output Index| 11

PMI GlossaryEurozone Composite New Orders IndexEurozone Composite Employment IndexEurozone Composite Input Prices IndexEurozone Composite Backlogs of Work IndexEurozone Composite Output Prices IndexEurozone Composite Future Output Index

Altogether, information is collected by questionnaire from around 4,500 manufacturing andservices companies each month.

EUROZONE CONSTRUCTION PMIEurozone construction data are currently based on surveys in Germany, France, Italy and Ireland.

EUROZONE MANUFACTURING INDICES

A composite eurozone series for each of the eleven manufacturing indices are calculated bytaking a weighted average of the individual (seasonally adjusted) national manufacturing indicesin question. For example, the Eurozone Manufacturing Output Index is calculated as a weighted
average of the Manufacturing Output indices of each of the eight eurozone nations covered.

Weights are derived from the latest Eurostat data on the gross value added of manufacturing (ineuros) for each of the nations covered. Total manufacturing gross value added of the eight
countries is calculated and then each component country's manufacturing GVA is calculated as apercentage of the total of the eight countries, giving a weight for each country.

In addition to the usual eleven indices, a composite manufacturing PMI for the eurozone isproduced by weighting together the eurozone manufacturing indices of output, new orders,
employment, suppliers' delivery times and stocks of purchases, using the usual PMI weights.

The eurozone surveys are conducted in Germany, France, Italy, Spain, Austria, Greece, theNetherlands and Ireland, accounting for 89% of total eurozone manufacturing output.

EUROZONE RETAIL PMI

For the Retail PMI, IHS Markit has recruited a representative panel of retail companies in France,
Germany and Italy. Together, these three countries account for approximately 62% of total
eurozone retail sales by value. The panel includes large chain retailers as well as smaller retailers| 12

PMI Glossary

to ensure balanced representation of the true structure of the eurozone retail sector. Similarly, thecomposition of the panel by classification of retailer (i.e. type of good sold) is monitored to ensure
accurate representation. IHS Markit ensures the correct structure remains in place over time andthat response rates remain sufficiently high to generate reliable economic data.
The Retail PMI surveys cover the following specific sectors. The definition of the retailers includedin each sector is shown along with the Standard Industrial Classification (SIC) codes of thecompanies included in each sector.


Clothing & Footwear: Retail sale of clothing, footwear and leather goods (SIC 5242 & 5243)

Food & Drink: Retail sale of food, beverages and tobacco (SIC 5210 & 5220)

Household Goods: Retail sale of household goods (SIC 5240, 5241, 5244-5248)

Autos & Fuel: Sale of motor vehicles and motorcycles; Retail sale of automotive fuel (SIC
5000)



Pharmaceuticals: Retail sale of pharmaceutical and medical goods, cosmetic and toiletries(SIC 5230)

Other (included in total only): Other retail not in stores (SIC 5250 & 5260)

EUROZONE SERVICES INDICES

Composite eurozone series for each of the services indices are calculated by taking a weighted
average of the individual (seasonally adjusted) national indices in question. For example, theEurozone Service Sector Business Activity Index is calculated as a weighted average of theService Sector Business Activity indices of each of the five eurozone nations covered.

Weights are derived from the latest Eurostat data on gross value added of services (in euros) for
each of the nations covered. Total service sector gross value added of the five countries iscalculated and then each component country's services GVA is calculated as a percentage of thetotal of the five countries, giving a weight for each country.

Surveys are conducted in Germany, Italy, France, Spain and Ireland, accounting for 78% of total
eurozone private sector services output.

EXPORT CLIMATE PMIThe Export Climate PMIs are calculated by weighting together national PMI data on output trends
from PMI surveys for manufacturing, services and construction. All data are seasonally adjusted.
Weights are derived from government statistics relating to the relative importance of individual
trading partners’ contributions to the external trade of a specific country (henceforth referred to as‘country A’). Our website currently carries Exporters’ PMI data for the United States of America,
China, Japan, India, Germany, the United Kingdom, France, Italy, Brazil and Spain.

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PMI Glossary

By weighting together the output trends from national PMI surveys according to their importanceto the external trade of country A, an advance indicator for the economic health of country A’s
export markets is obtained.
The output trends for country A’s trading partners are calculated using a weighted average of(where available) their Manufacturing PMI Output, Services PMI Business Activity andConstruction PMI Activity indices.
The sector coverage of output trends for each country available for inclusion in the Exporters’ PMI
series are shown in the table below.

Manufacturing

Services

Construction

Australia

Yes

Yes

Austria

Yes

Brazil

Yes

Yes

China

Yes

Yes

Czech Republic

Yes

Denmark

Yes

France

Yes

Yes

Yes

Germany

Yes

Yes

Yes

GreeceYes
Yes

Hong Kong
India

Yes

Indonesia

Yes

Israel

Yes

Italy

Yes

Yes

Japan

Yes

Yes

Kenya

Whole
Economy

Yes

Yes

Yes

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PMI Glossary

Yes

Lebanon
Malaysia

Yes

MexicoYes

Myanmar

Yes

Netherlands

Yes

New Zealand

Yes
Yes

Nigeria
Philippines

Yes

PolandYes

Republic of Ireland

Yes

Yes

Russia

Yes

Yes

Yes

Saudi Arabia

Yes

Singapore

Yes

South Africa

YesSouth Korea

Yes

Spain

Yes

Switzerland

Yes

TaiwanYes

Thailand

Yes

Turkey

Yes

Yes

Yes

United Arab Emirates
United Kingdom

Yes

Yes

United States ofAmerica

Yes

Yes

Vietnam

Yes

Yes

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PMI Glossary

N.B. As the Exporters’ PMI measures export performance, data for country A are excluded fromthe Exporters’ PMI composition. For example, the composition of the UK Exporters’ PMI does notinclude PMI data for the UK.

F

FLASH PMIThe Flash PMIs are advance estimates of final PMI data. The Flash PMI data are publishedapproximately one week before final PMI data and are typically based on 85%-90% of total PMI
responses each month.
Flash PMI data are currently produced for the below surveys:

Eurozone
FranceGermany
US
Japan

Manufacturing Services Composite
x
x
x
x
x
x
x
x
x
x
x
x
x

FRANCE CONSTRUCTION PMIThe IHS Markit French Construction PMI survey uses a panel of regularly participating companies
to monitor trends in business conditions in the private sector construction economy. The panel
has been carefully selected to accurately replicate the true structure of the construction economy.

FRANCE MANUFACTURING PMIThe French Manufacturing PMI Report features survey data collected from a representative panelof over 400 companies based in the French manufacturing sector. The panel is stratified by GDP
and company workforce size.

FRANCE SERVICES PMIThe French Services PMI Report features original survey data collected from a representative
panel of over 300 companies based in the French service sector. The panel has been carefully
selected to accurately replicate the true structure of the services economy.

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PMI Glossary

FRANCE RETAIL PMI
For the France Retail PMI, IHS Markit has recruited a representative panel of retail companies.
The panel includes large chain retailers as well as smaller retailers to ensure balanced
representation of the true structure of the French retail sector. Similarly, the composition of thepanel in geographical terms and by classification of retailer (i.e. type of good sold) is monitored toensure accurate representation.

G
GERMANY CONSTRUCTION PMIThe IHS Markit German Construction PMI survey uses a representative panel of over 200
companies based in the German construction sector. The panel structure is designed toaccurately represent the structure of the German economy, taking into account the different subsector weights by CNAE-93 (National Classification of Economic Activities) group, based on theregional, company size and industry contribution to GDP.

GERMANY MANUFACTURING PMIThe German Manufacturing PMI features original survey data collected from a representative
panel of over 500 companies based in the German manufacturing sector. The panel is stratified
by GDP and company workforce size.

GERMANY RETAIL PMI

For the Germany Retail PMI, IHS Markit has recruited a representative panel of retail companies.
The panel includes large chain retailers as well as smaller retailers to ensure balanced
representation of the true structure of the German retail sector. Similarly, the composition of thepanel in geographical terms and by classification of retailer (i.e. type of good sold) is monitored toensure accurate representation.

GERMANY SERVICES PMIThe German Services PMI Report features original survey data collected from a representative
panel of over 500 companies based in the German service sector. The panel has been carefully
selected to accurately replicate the true structure of the services economy.

GLOBAL COMPOSITE INDICES

Global manufacturing and service sector data are weighted together to produce the overall Global
Composite Indices. The weights are derived from the relative importance of the manufacturing| 17

PMI Glossary

and service sectors (for those service sectors covered by the PMI surveys) across all thosecountries covered by the Global PMI surveys, based on gross value added data from the WorldBank.

Six Global Composite indices are produced:

Global Composite Output Index

Global Composite New Orders Index

Global Composite Employment Index

Global Composite Input Prices Index

Global Composite Output Charges



Global Composite Backlogs

GLOBAL ELECTRONICS PMIThe Global Electronics data are compiled from monthly replies to questionnaires sent topurchasing executives in over 600 companies that specialise in the manufacture of goods which
utilize semiconductors and ICs as key inputs in the production process.

The sectors covered by the survey include:

Manufacture of computers and other information processing equipment;

Wired and wireless communications devices;

Manufacture of medical, precision and optical instruments;

Manufacture of consumer electronics devices.

Companies participating in the survey include firms based in the US, Western and Central Europe
and Asia (including Japan, China, Hong Kong, Taiwan and South Korea).

In line with IHS Markit manufacturing PMIs, the Global Electronics PMI is a weighted composite
index derived from the usual five individual indices.

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PMI Glossary

GLOBAL MANUFACTURING INDICES

Results from the national manufacturing surveys are used in the compilation of the Global
manufacturing series to produce the following eight indices:

Manufacturing Output Index

Manufacturing New Orders Index

Manufacturing New Export Orders Index

Manufacturing Input Prices Index

Manufacturing Suppliers' Delivery Times Index

Manufacturing Stocks of Purchases Index

Manufacturing Employment Index

Manufacturing Future Output

Composite Global series for each of these indices are calculated by taking a weighted average ofthe individual (seasonally adjusted) national manufacturing indices in question. For example, theGlobal Manufacturing Output Index is calculated as a weighted average of the Manufacturing
Output indices in over 40 nations covered.

In addition to the seven indices indicated above, a composite Global Manufacturing PMI is
produced by weighting together the Global manufacturing indices of output, new orders,
employment, suppliers' delivery times and stocks of purchases, using the usual PMI weights.

The surveys are conducted in the USA, Japan, the UK, Germany, France, Italy, Spain, theNetherlands, Austria, Ireland, Greece, Poland, the Czech Republic, Russia, China, India, Brazil,
Turkey, South Korea, Taiwan, Indonesia, Mexico, Malaysia, Myanmar, the Philippines, Thailand,South Africa, Australia, Singapore, Kenya, Nigeria, UAE, Saudi Arabia, Egypt, Lebanon and
Vietnam by IHS Markit Economics and in a number of other countries: Denmark, Israel, Hungary,
Switzerland and New Zealand. These countries together account for an estimated 95% of global
manufacturing output.

GLOBAL PMI SERIESThe Global PMIs, produced by IHS Markit, are designed to provide the most up-to-date picture of
global private sector business conditions.

In total, the surveys cover an estimated 89% of global GDP.

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PMI Glossary

GLOBAL SECTOR DATAThe Global manufacturing, services, construction and whole economy PMI survey data havebeen analysed at sector level, using IHS Markit sector definitions.

Global IHS Markit Sector PMI data coverage

Tier 2
GroupsBasic Materials

Consumer Goods

Consumer Services
Financials

Healthcare
Industrials

Technology

Tier 3
Sectors
Chemicals
Resources
Automobiles & Auto Parts
Beverages & Food

Tier 4Sub-sectors
Forestry & Paper Products
Metals & Mining
Food
Beverages

Household & Personal Use Products
Media
Tourism & Recreation
Banks
Insurance
Other Financials
Real Estate
Healthcare Services
Pharmaceuticals & Biotechnology
Industrial Goods
Machinery & Equipment
Construction Materials
Industrial Services
Commercial & Professional Services
Construction & Engineering
General Industrials
Transportation
Technology Equipment
Software & Services

Telecommunication Services| 20

PMI Glossary

Global PMI survey coverage

Manufacturing
Austria
Australia
BrazilCanadaChina
Czech Republic
FranceEgypt
Germany
GreeceHong Kong
India
Indonesia
Ireland
Italy
Japan
Kenya
Lebanon
Malysia
MexicoMyanmar
Netherlands
Nigeria
PolandPhilippines
RussiaSaudi Arabia
Singapore
Spain
South Africa
South Korea
TaiwanThailandTurkeyUAE
UgandaUK
USA
Vietnam
ZambiaConstruction

Retail

X

X

X

X
X

X

X

X

X
X
X
X
X

X

X
X
X
X
X
X
X

ServicesWhole
economy

X

X

X

X

X
X
X

X
X

X
X
X

X
X
X
X
X
X
X
X

X
X
X

X

X
X

X
X
X
X
X
X
X
X
X

X
X

X

X

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PMI Glossary

PMI Question Coverage

GLOBAL SERVICES INDICES

Results from national service sector surveys are used in the compilation of the Global services
series to produce the following seven comparable indices:

Service Sector Business Activity Index

Service Sector New Business Index

Service Sector Outstanding Business Index

Service Sector Input Prices Index

Service Sector Output ChargesService Sector Employment Index

Service Sector Future Activity| 22

PMI Glossary

Composite Global series for each of these indices are calculated by taking a weighted average ofthe individual (seasonally adjusted) national service indices in question. For example, the Global
Service Sector Business Activity Index is calculated as a weighted average of the Service Sector
Business Activity indices of each of the 15 nations covered.

Surveys are conducted in the USA, Japan, China, Germany, the UK, France, Italy, India, Brazil,
Spain, Ireland, Russia, Hong Kong, Kenya, Nigeria, UAE, Saudi Arabia, South Africa, Singapore,
Egypt and Lebanon by IHS Markit, and in New Zealand by Business NZ. These countries
together account for an estimated 76% of global service sector gross value added (GVA).

GLOBAL WEIGHTS

Weights for the Global Indices are derived from the latest available World Bank data on the grossvalue added of manufacturing and services for each of the nations covered. World Bank data on
value added are in constant 2000 US$, with all national currencies converted to 2000 US$ by theWorld Bank using DEC alternative conversion factors.

The DEC alternative conversion factor is the underlying annual exchange rate used for the WorldBank Atlas method. As a rule, it is the official exchange rate reported in the IMF's International
Financial Statistics (line rf). Exceptions arise where further refinements are made by World Bank
staff.

GREECE MANUFACTURING PMIThe Greek Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in 300 manufacturing companies in Greece. The
panel is stratified by GDP and company workforce size.

H

HONG KONG WHOLE ECONOMY PMIThe Hong Kong PMI Report is a monthly publication, researched and published by IHS Markit,
featuring original research data from a survey of purchasing managers in companies operating in
Hong Kong. The survey panel comprises over 300 companies. The panel is stratified by Standard
Industrial Classification (SIC) group, based on industry contribution to GDP.

I

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PMI Glossary

INDIA MANUFACTURING PMIThe India Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 manufacturing companies. The panel isstratified by GDP and company workforce size.

INDIA SERVICES PMIThe India Services PMI is based on data compiled from monthly replies to questionnaires sent topurchasing executives in around 350 private service sector companies. The panel has been
carefully selected to accurately replicate the true structure of the services economy.

INDONESIA MANUFACTURING PMIThe Indonesia Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 300 manufacturing companies. The panel isstratified by Standard Industrial Classification (SIC) group and company size, based on industry
contribution to Indonesian manufacturing value added.

INPUT PRICES (CONSTRUCTION/MANUFACTURING/SERVICES)IRELAND CONSTRUCTION PMIThe Irish Construction PMI survey uses a panel of regularly participating companies to monitor
trends in business conditions in the Irish private sector construction economy. The panel has
been carefully selected to accurately replicate the true structure of the construction economy.

IRELAND MANUFACTURING PMIThe Irish Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in around 285 manufacturing companies. The panel
is stratified by Standard Industrial Classification (SIC) group, based on the industry contribution to
GDP.

IRELAND SERVICES PMIThe Irish Services PMI Report is based on data compiled from monthly replies to questionnaires
sent to executives in around 450 companies operating in the Irish private sector services
economy. The panel has been carefully selected to accurately replicate the true structure of theservices economy.
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PMI Glossary

ISRAEL MANUFACTURING PMIThe Israel Manufacturing PMI is produced by the Israeli Purchasing and Logistics Managers
Association (IPLMA) using a methodology identical to that used by IHS Markit. For further
information go to www.iplma.org.il

ISTANBUL MANUFACTURING PMIThe Istanbul Chamber Of Industry Istanbul Manufacturing PMI (Purchasing Managers’ Index) is
produced by IHS Markit. The report features original survey data collected from a representative
panel of around 300 companies based in the Istanbul manufacturing sector. The panel is stratified
by Standard Industrial Classification (SIC) group, based on the industry contribution to GDP.

ITALY CONSTRUCTION PMIThe IHS Markit Italian Construction survey uses original survey data collected from a
representative panel of over 150 companies based in the Italian construction sector. The panel
has been carefully selected to accurately replicate the true structure of the construction economy.

ITALY MANUFACTURING PMIThe Italian Manufacturing PMI Report features original survey data collected from a
representative panel of over 450 companies based in the Italian manufacturing sector. The panel
is stratified by GDP and company workforce size.

ITALY RETAIL PMI

For the Italy Retail PMI, IHS Markit has recruited a representative panel of retail companies. The
panel includes large chain retailers as well as smaller retailers to ensure balanced representationof the true structure of the Italian retail sector. Similarly, the composition of the panel ingeographical terms and by classification of retailer (i.e. type of good sold) is monitored to ensure
accurate representation.

ITALY SERVICES PMIThe Italian Services PMI Report features original survey data collected from a representative
panel of over 450 companies based in the Italian service sector. The panel has been carefully
selected to accurately replicate the true structure of the services economy.

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PMI Glossary

J

JAPAN MANUFACTURING PMIThe Japan Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 manufacturing companies. The panel isstratified by Standard Industrial Classification (SIC) group, based on the industry contribution to
Japanese GDP.

We also publish flash PMI data for the Japanese manufacturing sector.

JAPAN SERVICES PMIThe Japan Services PMI is based on data compiled from monthly replies to questionnaires sent
to purchasing executives in over 400 private service sector companies. The panel has been
carefully selected to accurately replicate the true structure of the services economy.

K

KENYA WHOLE ECONOMY PMIThe Kenya PMI is based on data compiled from monthly replies to questionnaires sent topurchasing executives in approximately 400 private sector companies, which have been carefully
selected to accurately represent the true structure of the Kenyan economy, including agriculture,mining, manufacturing, services, construction and retail.

L

LEBANON WHOLE ECONOMY PMIThe Lebanon PMI Report is a monthly publication, researched and published by IHS Markit,
featuring original research data from a survey of purchasing managers in companies operating in
Lebanon. The survey panel comprises around 350 companies. The panel is stratified by Standard
Industrial Classification (SIC) group, based on industry contribution to GDP.

M

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PMI Glossary

MALAYSIA MANUFACTURING PMIThe Malaysia Manufacturing PMI is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 industrial companies. The panel isstratified by Standard Industrial Classification (SIC) group, based on the industry contribution toGDP. The manufacturing sector is divided into the following 8 broad categories: Basic Metals,
Chemicals & Plastics, Electrical & Optical, Food & Drink, Mechanical Engineering, Textiles &Clothing, Timber & Paper, Transport.

MANUFACTURING & SERVICES COMPOSITE PMINational manufacturing and service sector PMI data are weighted together to produce a series of
Manufacturing & Services Composite PMIs.

The weights are derived from the relative importance of the manufacturing and service sectors ineach respective national economy, based on gross value added data provided by national
statistical institutes in each country.

Manufacturing & Services Composite PMIs are produced for the following nations:Australia

Brazil



China



France

Germany



India



Italy



Japan



Spain



Republic of Ireland



Russia

United Kingdom

Data are available for the following diffusion indices:| 27

PMI Glossary

Manufacturing & Services Composite PMI Output Index

Manufacturing & Services Composite PMI New Orders Index

Manufacturing & Services Composite PMI Backlogs of Work Index

Manufacturing & Services Composite PMI Employment Index

Manufacturing & Services Composite PMI Input Prices Index

Manufacturing & Services Composite PMI Output Prices Index

Manufacturing & Services Composite PMI Future Activity Index

MANUFACTURING INDICESIHS Markit’s national manufacturing surveys use identical methodologies and collect questionbased data to produce the following eleven diffusion indices:

Manufacturing Output Index

Manufacturing New Orders Index

Manufacturing New Export Orders Index

Manufacturing Quantity of Purchases Index

Manufacturing Input Prices Index

Manufacturing Suppliers' Delivery Times Index

Manufacturing Stocks of Purchases Index

Manufacturing Stocks of Finished Goods Index

Manufacturing Employment Index

Manufacturing Backlogs of Work Index

Manufacturing Output Prices Index

Manufacturing Future Output Index

MANUFACTURING QUESTIONNAIRES

The following questions are asked of respondents participating in the PMI manufacturing surveys:| 28

PMI Glossary

OUTPUTThe volume of units produced this month compared with the situation one month ago (based on
respondent’s definition).

NEW ORDERS

The level of new orders received (in units, not money) this month compared with the situation one
month ago. Domestic and export orders are included in this definition.

NEW EXPORT ORDERS

The level of new orders received which will require shipment across the national border (in units,
not money) this month compared with the situation one month ago.

B ACKLOGS OF ORDERS

The level of unfinished sales orders, i.e. sales orders not yet started or not yet completed (inunits, not money) this month compared with the situation one month ago.

QUANTITY OF PURCHASESThe volume or number of items purchased this month compared with the situation one month
ago.

STOCKS OF PURCHASESThe level of inventory of materials purchased (in units, not money) this month compared with thesituation one month ago.

STOCKS OF FINISHED G OODSThe level of finished product which has come off the production line and is awaiting
shipment/sales (in units, not money) this month compared with the situation one month ago.

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PMI Glossary

EMPLOYMENTThe level of full time employment this month compared with the situation one month ago. For the
purpose of calculation it is agreed that two part time employees should be treated as one full time
employee. Seasonal hiring of employees is excluded in this definition.

INPUT P RICES

Average prices of all goods purchased (volume weighted) this month compared with the situation
one month ago.

OUTPUT PRICES

Average selling prices of all goods produced (volume weighted) this month compared with thesituation one month ago.
SUPPLIERS ’ DELIVERY T IMESThe average length of time agreed to deliver the goods this month compared with the situation
one month ago. For the surveys produced by IHS Markit, the interpretation of the Suppliers’
Delivery Times Index is a reading above 50.0 signals shorter average lead-times, below 50.0
signals longer average lead-times and a reading of 50.0 signals no change in average lead-times.
However, for Australia Manufacturing and New Zealand Manufacturing Suppliers’ Delivery Times
Indices, the interpretation is the opposite. A reading above 50.0 signals longer average lead-times
and a reading below 50.0 signals shorter average lead-times.

For the purposes of the Global Manufacturing PMI, data for these nations are inverted to beconsistent with that of the other surveys.

FUTURE OUTPUT

Whether business activity levels will be higher, the same or lower than current levels in 12
months’ time.

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PMI Glossary

MEXICO MANUFACTURING PMIThe Mexico Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in around 400 manufacturing companies. The panel
is stratified by GDP and company workforce size.

MYANMAR MANUFACTURING PMIThe Myanmar Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in around 400 manufacturing companies. The panel
is stratified by GDP and company workforce size.

N

NETHERLANDS MANUFACTURING PMIThe Netherlands Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in 350 manufacturing companies in the
Netherlands. The panel structure is designed to accurately represent the structure of the Dutch
economy, taking into account the different sub-sector weights by CNAE-93 (National
Classification of Economic Activities) group, based on the regional, company size and industry
contribution to GDP.

NEW BUSINESS (SERVICES)NEW EXPORT ORDERS (MANUFACTURING)NEW ORDERS (CONSTRUCTION/MANUFACTURING)NEW ZEALAND MANUFACTURING PMIThe New Zealand Performance of Manufacturing Index (Business NZ PMI) Report is produced byBusiness NZ and is a monthly survey of the New Zealand manufacturing sector providing an early
indicator of activity levels. The monthly data are generated from more than 200 responses. In linewith IHS Markit’s own headline manufacturing PMI readings, the NZ PMI is a national composite
index based on the diffusion indices for production, new orders, deliveries, inventories andemployment. For further information go to www.businessnz.org.nz| 31

PMI Glossary

NIGERIA PMIThe Nigeria PMI is based on data compiled from monthly replies to questionnaires sent topurchasing executives in approximately 400 private sector companies, which have been carefully
selected to accurately represent the true structure of the Nigerian economy, including agriculture,mining, manufacturing, services, construction and retail.

O

OUTPUTOUTPUT PRICES (MANUFACTURING/SERVICES)ORDERS TO INVENTORIES RATIOS

Orders to Inventories Ratios in the manufacturing sector are calculated by dividing the New
Orders Index by the Stocks of Finished Goods Index. This data is currently available for thefollowing countries/regions: Austria, Brazil, China, Czech Republic, Emerging Markets, eurozone,
France, Germany, Greece, India, Ireland, Italy, Japan, Netherlands, Poland, Russia, South
Korea, Spain, Taiwan, Turkey, UK.

P

PHILIPPINES MANUFACTURING PMI

The Philippines Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in around 400 manufacturing companies. The panel
is stratified by GDP and company workforce size.
PMI (PURCHASING MANAGERS’ INDEX)The PMI (Purchasing Managers’ Index) is a summary composite index based on the seasonallyadjusted diffusion indices for five of the manufacturing survey indicators, each of which is
assigned with specific weights as shown below*.

New orders

0.30

Output0.25

Employment

0.20

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PMI Glossary

Suppliers’ delivery times 0.15
Stocks of purchases

0.10

The Suppliers’ Delivery Times Index is inverted in the above calculation.

*N.B. The composition of the Switzerland Manufacturing PMI differs slightly from that of the other
PMIs carried on our website. The Switzerland PMI comprises:

Backlogs of orders

0.30

Output0.25

Employment

0.20

Suppliers’ delivery times 0.15
Stocks of purchases

0.10

PMI SEASONAL ADJUSTMENT

The seasonal adjustment of PMI survey data is usually calculated using the X12 statisticalprogramme of adjustment, as used by governmental statistical bodies in many developed
countries. However, the X12 programme only produces satisfactory data if five years' historical
data are available. In the absence of such a history of data, the PMI survey data are seasonallyadjusted using an alternative method, developed by IHS Markit.
This method was initially designed to provide analysts with a guide to the underlying trend in thesurvey data and should be recognised as a second-best approach to X12. However, pastexperience in other countries suggests that IHS Markit’s method of seasonal adjustment goesbeyond this initial purpose and in fact in many cases outperforms X12 as a guide to comparable
official data.
IHS Markit's method involves using reasons cited by responding survey panel member
companies for changes in variables, which are then used to ascertain whether a reported
increase or decrease in each variable reflects an underlying change in economic conditions or
simply a seasonal variation. Seasonal variations may include changes in demand arising fromChristmas, Easter or other public holidays. Normal, expected changes in weather are notincluded. The net balance of companies reporting an improvement in a variable less thosereporting a deterioration is then adjusted to allow for the percentages of companies reporting
seasonal induced increases or decreases in the variable.

POLAND MANUFACTURING PMI

The Poland Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 200 manufacturing companies. The panel isstratified by GDP and company workforce size.
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PMI Glossary

PRODUCTIVITY PMIIHS Markit calculate productivity using company level data from national manufacturing andservice sector panels. Data for output and employment from each respondent are analysed to
produce a rate of change of each company’s productivity.

The information from each company is then averaged to form a single-figure index for
manufacturing and service sectors. This figure is then seasonally adjusted using X12 to allow for
expected movements arising from anticipated events such as Christmas and holidays. Finally, thepublished data are smoothed using an end-point three-month moving average.

Adjusted, smoothed data for manufacturing and services are then weighted together using official
gross value added data to construct an overall figure for each country.

Country level data are also combined to produce manufacturing, services and total economy
productivity measures for the eurozone and European Union.

Q

QUANTITY OF PURCHASES (CONSTRUCTION/MANUFACTURING)QUESTIONNAIRES

A key feature of the PMI surveys is that they ask only for factual information. They are notsurveys of opinions, intentions or expectations and the data therefore represent the closest one
can get to “hard data” without asking for actual figures from companies. Questions asked relate to
key variables such as output, new orders, prices and employment. Questions take the form of
up/down/same replies. For example, “Is your company’s output higher, the same or lower than
one month ago?”
Respondents are asked to take expected seasonal influences into account when considering theirreplies.
For each main survey question, respondents are asked to provide a reason for any change on theprevious month, if known. This assists not only the understanding of variable movement but also
in the seasonal process when X12 cannot be used.

For the specific questionnaires used by IHS Markit see construction questionnaire, manufacturing
questionnaire, services questionnaire.

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PMI Glossary

R

RETAIL PMI

Retail PMI data is currently available for France, Germany, Italy and the Eurozone.
The following questions are part of the Retail PMI surveys:

Sales (Monthly change)

Sales (Annual change)Actual versus Planned Sales

Expected Sales

Employment

Input Prices

Margins

Stocks of Goods for ResaleValue of Goods Purchased for Resale

RUSSIA MANUFACTURING PMIThe Russian Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in 300 manufacturing companies in Russia. The
panel is stratified by GDP and company workforce size.

RUSSIA SERVICES PMIThe Russian Services PMI Report is based on data compiled from monthly replies toquestionnaires sent to a panel of 300 private companies in the Russian service sector. The panel
has been carefully selected to accurately replicate the true structure of the services economy.

S

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PMI Glossary

SAMPLE BASE

The PMI indices are derived from original national surveys of manufacturing, services andconstruction sector business conditions conducted by IHS Markit. In many cases, the surveys areproduced in conjunction with national members of the International Federation of Purchasing andMaterials Management (IFPSM). All surveys are produced using identical methodologies, thus
ensuring comparability of data.

SAUDI ARABIA WHOLE ECONOMY PMIThe Saudi Arabia Whole Economy report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in approximately 400 private sector companies,
which have been carefully selected to accurately represent the true structure of the Saudi Arabia
economy, including manufacturing, services, construction and retail. The panel is stratified byStandard Industrial Classification (SIC) group, based on industry contribution to GDP.

SERVICES PMIThe Services PMI is a phrase sometimes used to refer to the Business Activity Index – theheadline index from the IHS Markit service sector reports. This series is not a weighted composite
index like the Manufacturing PMI, rather it is an index designed to measure changes in total
services business activity. The index is derived from the question that asks respondents tocompare the level of total services activity with the situation one month ago.

SERVICES INDICESIHS Markit’s national services surveys use identical methodologies and collect data to produce
the following seven indices:

Service Sector Business Activity Index

Service Sector New Business Index

Service Sector Outstanding Business Index

Service Sector Input Prices Index

Service Sector Prices Charged Index

Service Sector Employment Index

Service Sector Business Activity Expectations Index

The PMI Report on Irish Services also includes the following additional question:| 36

PMI GlossaryService Sector New Export Business IndexSERVICES QUESTIONNAIRE

The following questions are asked of respondents participating in the PMI service sector surveys:

BUSINESS ACTIVITY

The direct equivalent of manufacturing output. The level of business activity (as defined byrespondent) this month compared with the situation one month ago.
INCOMING NEW BUSINESSThe direct equivalent of manufacturing new orders. The level of incoming new business received(in units, not money) this month compared with the situation one month ago.

OUTSTANDING BUSINESSThe direct equivalent of manufacturing backlogs of work. The level of unfinished sales orders orwork outstanding, i.e. sales orders not yet started or not yet completed (in units, not money) thismonth compared with the situation one month ago.

EMPLOYMENTThe level of full time employment (in units, not money) this month compared with the situation one
month ago. For the purpose of calculation it is agreed that two part time employees should betreated as one full time employee. Seasonal hiring of employees is excluded in this definition.

INPUT P RICES

Average prices of all inputs (volume weighted) this month compared with the situation one monthago. Purchases of goods and services, staff costs, rents etc. are all included.

PRICES CHARGED

The direct equivalent of manufacturing output prices. Average prices charged for all services(volume weighted) this month compared with the situation one month ago.

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PMI Glossary

BUSINESS EXPECTATIONS

Whether business activity levels will be higher, the same or lower than current levels in 12
months’ time.

NEW EXPORT BUSINESS

Included in the PMI Report on Irish Services, this index is the direct equivalent of manufacturing
new export orders. Respondents are asked to compare the level of new orders/new businessfrom abroad placed at their company compared with the situation one month ago.

SINGAPORE WHOLE ECONOMY PMIThe Singapore PMI is based on data compiled from monthly replies to questionnaires sent toexecutives in over 400 private sector companies, selected to accurately represent the true
structure of the Singapore economy, including manufacturing, services, construction and retail.
The panel is stratified by Standard Industrial Classification (SIC) group, based on industry
contribution to GDP.

SOUTH AFRICA WHOLE ECONOMY PMIThe South Africa PMI report is based on data compiled from monthly replies to questionnaires
sent to purchasing executives in approximately 400 private sector companies, which have been
carefully selected to accurately represent the true structure of the South African economy,
including manufacturing, services, construction and retail. The panel is stratified by Standard
Industrial Classification (SIC) group, based on industry contribution to GDP.

SOUTH AFRICA MANUFACTURING PMIThe Bureau for Economic Research (BER) produces a Purchasing Managers’ Index (PMI) of
current business conditions in the South African economy, with a sample of around 300
companies. The index is compiled on a monthly basis by the BER in collaboration with Barclays
and currently focuses on business conditions in the manufacturing sector. For further information
go to www.ber.ac.za

SOUTH KOREA MANUFACTURING PMIThe South Korea Report on Manufacturing is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 manufacturing companies. The panel isstratified by GDP and company workforce size.

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PMI Glossary

SPAIN MANUFACTURING PMIThe Spanish Manufacturing PMI Report features original survey data collected from a
representative panel of 400 companies based in the Spanish manufacturing sector. The panel isstratified by GDP and company workforce size.

SPAIN SERVICES PMIThe Spanish Services PMI features original survey data collected from a representative panel ofover 300 companies based in the Spanish services sector. The panel has been carefully selectedto accurately replicate the true structure of the services economy.

STOCKS OF FINISHED GOODSSTOCKS OF PURCHASES
SUPPLIERS’ DELIVERY TIMES (CONSTRUCTION/MANUFACTURING)SURVEY PANELS

Purchasing managers form a near ideal survey sample base, having access to information often
denied to many other managers. Due to the nature of their job function, it is important thatpurchasing managers are among the first to know when trading conditions, and therefore
company performance, change for the better or worse. IHS Markit therefore uses such executives
to produce data on business conditions.
In each country, a panel of purchasing managers is carefully selected by IHS Markit, designed toaccurately represent the true structure of the chosen sector of the economy as determined by
official data. Generally, value added data are used at two-digit SIC level, with a further breakdown
by company size analysis where possible. The survey panels therefore replicate in miniature theactual economy. A weighting system is also incorporated into the survey database that weights
each response by company size and the relative importance of the sector in which that company
operates.
Particular effort is made to achieve monthly survey response rates of around 80%, ensuring thatan accurate picture of business conditions is recorded over time.
Data are collected in the second half of each month via mail, email, web, fax and phone.

SWITZERLAND MANUFACTURING PMIThe SVME Purchasing Managers’ Index (PMI) is a joint project between the SVME Association ofPurchasing and Materials Management (SVME) and procure.ch. It is based on a monthly survey| 39

PMI Glossaryof around 200 SVME members. The survey and its evaluation follow the guidelines of theInternational Federation of Purchasing and Materials Management, guidelines which have been
established in the USA for many decades. The SVME carries out the survey while procure.chevaluates and publishes the results.
IHS Markit’s website carries Switzerland Manufacturing PMI data on the following variables:Backlogs of OrdersEmployment

Output

Purchasing Managers’ Index (PMI)*Suppliers’ Delivery Times**

Stocks of Purchased Goods

Average Input Prices*The composition of the Switzerland Manufacturing PMI differs slightly from that of the other PMIs
carried on our website. The Switzerland PMI comprises:

Backlogs of Orders

0.30

Output0.25

Employment

0.20

Suppliers’ Delivery Times

0.15

Stocks of Purchases

0.10** The interpretation of the Switzerland Manufacturing Suppliers’ Delivery Times Index differsfrom that of equivalent indices produced by IHS Markit.
A reading above 50.0 for the Switzerland Manufacturing Suppliers’ Delivery Times Index isinterpreted as a lengthening of average supplier lead-times, whereas a reading below 50.0
signals a shortening.

T

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PMI Glossary

TAIWAN MANUFACTURING PMIThe Taiwan Report on Manufacturing is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 300 manufacturing companies. The panel isstratified by GDP and company workforce size.

THAILAND MANUFACTURING PMIThe Thailand Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in around 400 manufacturing companies. The panel
is stratified by GDP and company workforce size.

TURKEY MANUFACTURING PMIThe Turkey Manufacturing PMI Report features original survey data collected from a
representative panel of over 400 manufacturing companies. The panel is stratified by GDP andcompany workforce size.

U

UGANDA WHOLE ECONOMY PMIThe Uganda PMI is based on data compiled from monthly replies to questionnaires sent topurchasing executives in approximately 400 private sector companies, which have been carefully
selected to accurately represent the true structure of the Ugandan economy, including agriculture,mining, manufacturing, services, construction and retail.

UK CONSTRUCTION PMIThe UK Construction PMI survey is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 170 construction companies. The panel isstratified geographically and by Standard Industrial Classification (SIC) group, based on theregional and industry contribution to GDP.

UK JOBSThe Report on Jobs features original survey data from a panel of around 400 recruitment
consultancies which provide the most up-to-date and comprehensive monthly picture of
recruitment, employment and employee earnings trends available. Data were first collected in
October 1997.
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PMI Glossary

In the Report on Jobs, panel members are asked to respond on the following:Permanent Staff Placements

Billings from Temporary/Contract Staff

Demand for Staff by Sector

Availability of Permanent Staff

Availability of Temporary/Contract Staff

Permanent Salaries



Temporary/Contract Pay Rates

PERMANENT S TAFF PLACEMENTS
A Permanent Staff Placements Index is derived from panel members’ responses to the question:“Please compare the number of staff placed in permanent positions with the number one monthago.” The index therefore provides a measure of permanent staff recruitment activity relative tothe previous month.
T EMPORARY S TAFF BILLINGS
A Temporary Staff Billings Index is calculated from responses to the question: “Please compare
your billings received from the employment of temporary and contract staff with the situation one
month ago”. This indicator tracks the level of use of temporary employees sourced throughrecruitment agencies.
DEMAND FOR S TAFF BY SECTOR
Consultants are requested to compare the demand for staff (ie. level of vacancies) according tosector with the situation one month ago. The sectors monitored are:

Computing & ITExecutive & Professional

Accounting & FinancialSecretarial & ClericalNursing/Medical/Care

Hotel & CateringEngineering & Construction

Blue Collar| 42

PMI Glossary

Demand is measured separately for permanent and temporary staff in each sector.

Additionally, responses are aggregated to produce a composite Job Vacancies Index and indicesof overall demand for permanent and temporary staff.
AVAILABILITY OF PERMANENT S TAFFA Permanent Staff Availability Index is calculated from the question: “Is the availability ofcandidates for permanent vacancies better, the same or worse than one month ago?”. Declining
availability of staff indicates the emergence of skill shortages, while improving availability signals
a growing pool of candidates.
AVAILABILITY OF T EMPORARY/CONTRACT S TAFF
A Temporary/Contract Staff Availability Index is calculated from the question: “Is the availability ofcandidates for temporary vacancies better, the same or worse than one month ago?”. This
indicator monitors the supply of temp workers.
PERMANENT S ALARIESA Permanent Salaries Index is calculated from the question: “Are average salaries for permanent
staff higher, the same or lower than one month ago?”. This index tracks pay pressures in themarket for permanent staff.
T EMPORARY/CONTRACT P AY R ATESAn Index of temporary staff pay is calculated from the question: “Are average hourly rates for
temporary/contract staff higher, the same or lower than one month ago?”. This indicator monitors
pay rates offered to temporary staff by agencies.

UK MANUFACTURING PMIThe UK Manufacturing PMI Report features original survey data collected from a representative
panel of over 600 companies based in the UK manufacturing sector. The panel is stratified by
GDP and company workforce size.

UK SERVICES PMIThe UK Services PMI Report features original survey data collected from a representative panelof around 700 companies based in the UK services sector. The panel has been carefully selectedto accurately replicate the true structure of the services economy.

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PMI Glossary

UNITED ARAB EMIRATES WHOLE ECONOMY PMIThe UAE Whole Economy report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in approximately 400 private sector companies,
which have been carefully selected to accurately represent the true structure of the United ArabEmirates economy, including manufacturing, services, construction and retail. The panel isstratified by Standard Industrial Classification (SIC) group, based on industry contribution to GDP.

US MANUFACTURING PMIThe IHS Markit US Manufacturing PMI is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 manufacturing companies. The panel isstratified by GDP and company workforce size.

We also publish flash US Manufacturing PMI data.

The IHS Markit US Manufacturing PMI data are included in the Global Manufacturing PMI.

US SECTOR PMIThe US manufacturing and services PMI survey data have been analysed at sector level, using
IHS Markit sector definitions.

US IHS Markit Sector PMI data coverage

Tier 2
GroupsBasic Materials
Consumer Goods

Tier 3
Sectors
Consumer Cyclicals
Consumer Non-Cyclicals

Consumer Services
Financials
Healthcare
Industrials
Technology| 44

PMI Glossary

US SERVICES PMIThe IHS Markit US Services PMI is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 services companies. The panel isstratified by GDP and company workforce size.

We also publish flash US Services PMI data.

The IHS Markit US Services PMI data are included in the Global Services PMI.

V

VIETNAM MANUFACTURING PMIThe Vietnam Manufacturing PMI Report is based on data compiled from monthly replies toquestionnaires sent to purchasing executives in over 400 manufacturing companies. The panel isstratified by Standard Industrial Classification (SIC) group and company size, based on industry
contribution to Vietnamese GDP.

W

WHOLE ECONOMY QUESTIONNAIRES

Whole Economy questionnaires contain some indices that do not appear on the questionnaires ofother sectors. These are:
PURCHASE PRICES

Average prices of purchases of goods and services this month compared with the situation one
month ago.

STAFF COSTS

Average costs of wages and salaries this month compared with the situation one month ago.

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PMI Glossary

OVERALL INPUT PRICES

Average prices of all inputs this month compared with the situation one month ago. Purchases ofgoods and services, staff costs, rents etc. are all included.

X

X12

X12 is a statistical programme designed to account and correct for expected seasonal variation inunderlying raw data series. For further details see US Census Bureau.

YZ

ZAMBIA WHOLE ECONOMY PMIThe Stanbic Bank Zambia Purchasing Managers’ Index is based on data compiled from monthly
replies to questionnaires sent to purchasing executives in approximately 400 private sector
companies, which have been carefully selected to accurately represent the true structure of theZambian economy, including agriculture, construction, industry, services and wholesale & retail.
The panel is stratified by GDP and company workforce size.

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