PMI Forecasting with Shipping Demand Data
PMI Forecasting using Shipping Demand Data from Shipfix
“Leveraging Shipfix data with Causal AI generated better performance than using IHS Markit forecasts alone." (causaLens report, 17 June 2020)
Shipfix and causaLens are delighted to deliver this report on 'PMI Forecasting with Shipping Demand Data' to discuss how AI generates better predictive performances on macroeconomic drivers than traditional predictive models.
Purchasing Managers’ Index (PMI) series are compiled from monthly surveys of market participants’ expectations of future market conditions. They are leading indicators of economic health, and are regularly used to forecast GDP. This report highlights an improvement in predictive performance by an average of 20% by using Shipfix's shipping demand data to improve upon the IHS Markit forecasts of both US PMI and Chinese PMI, demonstrating the value of our alternative data to improve economic forecasting.