S&P Global Manufacturing PMI

At A Glance#

Field	Detail
Provider	S&P Global Market Intelligence (formerly Markit)
Survey / Tool	S&P Global US Manufacturing PMI Survey
Frequency	Monthly — Flash (preliminary) released mid-month; Final released at start of following month
Indicator Type	Leading
Main Use	Alternative gauge of U.S. manufacturing health; used for cross-country comparisons and early Flash signals
Timeframe Tracked	Short-Term (1–6 months)
Source	https://www.pmi.spglobal.com/Public/Home/PressRelease/02b7d9dac19f4c2f883c4eca8f785978

What It Is#

S&P Global Manufacturing PMI is a monthly diffusion index measuring U.S. manufacturing sector activity, published by S&P Global Market Intelligence (formerly known as Markit). It covers similar ground to ISM Manufacturing PMI but uses a larger panel, different component weights, and — critically — publishes a Flash (preliminary) reading mid-month, giving markets an earlier signal than the ISM.

S&P Global uses the same methodology across 40+ countries, making it the preferred benchmark for international comparisons between the U.S., Europe, and Asia.

For how PMI and the diffusion index formula work, see PMI Diffusion Index Explained.

Who Provides It#

S&P Global Market Intelligence, formerly known as Markit. The survey is used to anticipate changing trends in official data including GDP, industrial production, employment, and inflation.

How It Is Collected#

• Questionnaires are sent to purchasing managers in a panel of approximately 600 manufacturers.
• Survey responses are collected in the second half of each month.
• The panel is stratified by:
  • Detailed sector
  • Company workforce size
  • Contribution to GDP
• Respondents indicate whether each variable has increased, decreased, or stayed the same compared with the previous month.

Variables surveyed:

• Output
• New orders
• New export orders
• Backlogs of work
• Stocks of finished goods
• Employment
• Quantity of purchases
• Suppliers' delivery times
• Stocks of purchases
• Input prices
• Output prices
• Future output

How It Is Computed#

S&P Global calculates a diffusion index for each variable:

$\text{Index} = \%\ \text{higher responses} + 0.5 \times \%\ \text{unchanged responses}$

The headline S&P Global Manufacturing PMI is a weighted average of five sub-indexes with unequal weights (unlike ISM's equal 20% each):

Sub-Index	Weight	Rationale
New Orders	30%	Most forward-looking signal — rising orders mean future production must rise
Output	25%	Current factory production activity
Employment	20%	Firms hire more when demand and production are stronger
Suppliers' Delivery Times	15%	Inverted before inclusion — slower deliveries signal strong demand or supply bottlenecks
Stocks of Purchases	10%	Inventory purchasing patterns

Important: Supplier delivery times are inverted so the index moves in the same direction as other components (slower deliveries = higher demand = higher index reading).

Reading the number:

• Above 50 → manufacturing increasing vs. prior month
• Below 50 → manufacturing decreasing vs. prior month

Indicator Type#

Leading. S&P Global states that PMI data are widely used to anticipate changing trends in official data such as GDP, industrial production, employment, and inflation. The most leading component is New Orders, which signals future production demand before it shows up in factory output data.

ISM vs S&P Global Manufacturing#

Feature	ISM Manufacturing	S&P Global Manufacturing
Panel size	~400 companies	~600 companies
Component weights	Equal — 20% each	Unequal — New Orders 30%, Output 25%, Employment 20%, Delivery Times 15%, Stocks 10%
Flash release	No	Yes — mid-month preliminary
Delivery times treatment	Standard direction	Inverted
Market use	Domestic Fed/trader benchmark	International comparison benchmark
Company size focus	Large multinationals	Mix including medium-sized businesses

See PMI Diffusion Index Explained for the full ISM vs S&P Global breakdown.

Related Notes#

• ISM Manufacturing PMI — the legacy domestic alternative; equal-weighted; no Flash
• S&P Global Services PMI — services sector counterpart from the same provider
• PMI Diffusion Index Explained — diffusion index formula and ISM vs S&P Global comparison

Sources#

• S&P Global PMI FAQ
• S&P Global US Manufacturing PMI Press Release