Global economy forecasts improved using monthly Purchasing Managers Index.
The study aimed to improve short-term economic forecasts by using monthly global Purchasing Managers Index (PMI) data. The researchers found that incorporating PMIs into forecasting models helped predict global economic trends more accurately, especially during the Great Recession. By updating forecasts with monthly PMI releases, the models performed better in predicting global output, imports, and inflation. This shows that PMIs are valuable indicators for predicting short-term economic changes.