In November 2015, the Purchasing Managers' Index (PMI)for Canada 's manufacturing sector was 48.6 while the PMI for Germany was 52.9.Based solely on this data, we would expect
A)employment to rise in both regions.
B)employment to fall in both regions.
C)employment to remain stable in Canada and fall in Germany.
D)employment to fall in Canada and remain stable in Germany.
E)employment to fall in Canada and rise in Germany.

Question

Quizplus · Accepted Answer

The Purchasing Managers' Index (PMI) is an indicator of the economic health of the manufacturing sector. A PMI above 50 indicates expansion, while a PMI below 50 indicates contraction. Therefore, with Canada's PMI at 48.6, it suggests contraction and potentially falling employment in the manufacturing sector. Germany's PMI at 52.9 indicates expansion, suggesting the possibility of rising employment in its manufacturing sector.

In November 2015, the Purchasing Managers' Index (PMI)for Canada 'S