Purchasing Managers Index
Key facts about the Index :
- PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity that is happening in the country.
- It takes into account both the manufacturing and services sectors.
- It is a survey-based measures that asks the respondents about changes in their perception of some key business variables.
- It takes into account private sector companies and it is used worldwide in different economies.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
- IHS Markit produces the PMI (Purchasing Managers Index) for India.
- The index is derived after a survey of 500 manufacturing companies.
Syllabus : prelims- Economy