Purchasing Managers’ Index
✓As per the IHS Markit India Purchasing Managers’ Index (PMI), India’s manufacturing output showed the strongest growth in 13 years in October 2020.
✓Purchasing Managers’ Index (PMI) rose from 56.8 in September to 58.9 in October.
√Increase in Sales;
√ Rise in Export Orders √Improvement in IIP
✓PMI is an indicator of business activity – both in the manufacturing and services sectors.
✓It is calculated separately for the manufacturing and services sectors.
✓A composite index is also constructed.
✓The PMI summarizes whether market conditions as viewed by purchasing managers are expanding, neutral, or contracting.
✓Purpose: To provide information about current and future business conditions to company decision makers, analysts, and investors.
✓The PMI is usually released at the start of every month.
✓PMI is compiled by IHS Markit for more than 40 economies worldwide.