Markit/CIPS Manufacturing PMI is calculated by Markit together with the Chartered Institute of Procurement & Supply (CIPS). It characterizes the state of the industrial sector.
The index is calculated based on surveys of purchasing managers in the manufacturing sector. The mangers answer a number of questions about the production development, as well as their economic and financial expectations. The survey data is compiled into a leading indicator of overall economic performance.
A reading above 50 indicates growth in the sector and can have a positive effect on the pound quotes.
