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The Services Purchasing Managers Index is an important reading, which takes into consideration a broad range of measurements within the services industry. The index offers a perspective regarding the outlooks of purchasing managers.

The readings are based on insights pertaining to employment figures, production levels, orders of goods, and planned deliveries from suppliers and current inventory data. An outcome of over 50.0 means conditions are expanding, while a result below 50.0 shows the services industry is experiencing contraction.

Investors are keen to see the statistics because they offer a dynamic way to gain perspective into long-term outlooks from a diverse range of businesses like accounting, tourism, restaurants, computer service and healthcare among others. A surprise result from the Services PMI can directly impact equities and forex trading.

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