A monthly survey of business optimism. The survey asks managers about their purchasing patterns in recent months as well as expected purchases to come. Because managers generally have good insight into the direction of future demand, trends in Bloomberg PMI(R) suggests consumer consumption patterns. As a driving force behind the economy, consumer spending fuels economic growth. Consumer demand can also lead to growing price pressures and inflation. Finally, the Bloomberg PMI comes out a month ahead of government figures that relate to retail sales, so it is the earliest indication of the health of the retail sector.
A headline value above 50 indicates growth, while a value below 50 indicates contraction; the greater the distance from 50, the stronger the effect.
Note: To construct the index, 1000 retailers from the Euro Zone's principal retail economies (Germany, France, and Italy) are surveyed for the report each month. Because these three countries make up over 75% of the Euro Zone's retail sector, retail sales from these three countries are a good measure of the overall health of the Euro Zone retail sector.
Relevance: 
Rarely affects markets
Release schedule: 9:00 (GMT); monthly, first week of the month
Source of report: Bloomberg (published by NTC Economics LTD)
Web Address: http://www.ntceconomics.com
Address of release: http://www.prnewswire.co.uk/cgi/news/company?id=85713
AKA: PMI(R)
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