Published on: May 3, 2022
PURCHASING MANAGERS’ INDEX
NEWS : S&P Global India Manufacturing Purchasing Managers’ Index recently released
WHAT IT SAYS
The report sees a expansion in Indian economy
- Survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month
- Derived from a series of qualitative questions
How does one read the PMI?
- A figure above 50 denotes expansion in business activity
- Anything below 50 denotes contraction
- Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data
- If the figure is higher than the previous month’s then the economy is expanding at a faster rate
- If it is lower than the previous month then it is growing at a lower rate.