NEWS : S&P Global India Manufacturing Purchasing Managers’ Index recently released

WHAT IT SAYS

The report sees a expansion in Indian economy

ABOUT PMI

• 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.