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Forward-looking indicators for your business
 
Advance signals of changing demand for goods and services can be gleaned from PMI™ data, especially when users plot their own company’s sales or price data against PMI series.

This can help purchasing managers, marketing managers, buyers, planners and other business decision makers to keep one step ahead of competitors.

The advantages are clear:

•   improved production control;

•   more efficient inventory control;

•   more efficient marketing, through identification of where to focus a sales or marketing push.


A degree of experimentation on behalf of the user may be required to identify the best series that will act as your own “leading indicator”. Often, it will be the obvious series that are the most informative:

•   New order indices of your most important customer sectors (or export markets) may provide a good indication of future demand for your goods or services.

•   Rising stock levels in your customer sectors (or export markets) may soon translate into lower demand for your goods or services, and vice versa.

•   Falling backlogs of work in your customer sectors (or export markets) should translate into lower demand for your goods or services in coming months, and vice versa.

•   Changes in employment within your customer markets (or export markets) may help you better understand if these sectors are expanding or contracting, and therefore where future sales may be sourced from.


 
 
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