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The Nikkei Purchasing Managers' Index (PMI) is a composite indicator designed to provide a single-figure snapshot of operating conditions in the private sector economy, particularly in Asian markets like Japan and India. It provides an early indication of economic trends by measuring variables such as output, new orders, and employment. The index is widely watched by global investors to gauge the industrial and service sector momentum in major manufacturing hubs.
The index is calculated based on monthly surveys of a representative panel of companies. It uses a diffusion index approach where respondents indicate whether conditions have improved, deteriorated, or remained unchanged compared to the previous month.
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