Purchasing Managers Index

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

CIVIL SERVICES EXAM