Data from S&P Global released today, Monday, showed that the final reading of the Purchasing Managers' Index (PMI) for the manufacturing sector in the United States was positive and exceeded expectations, with the index recording 52.7 points during February, surpassing expectations that had indicated it would record around 51.6 points. The previous reading was 51.6 points in January.
This index is based on a survey of purchasing managers in the industrial sector and serves as a key gauge of economic health. Readings above 50 points indicate an expansion in industrial activity, while lower values suggest a contraction. The report is released in two phases, preliminary and final, with a one-week time gap between them.
Markets closely monitor this index, especially amid tightening monetary policies and interest rate hikes, as it helps assess the degree of recovery in the U.S. economy. These data also directly affect the movements of the U.S. dollar against other currencies, due to their role in shaping investors' expectations regarding the Federal Reserve's upcoming monetary policy.
