PURCHASING MANAGERS INDEX
News: Purchasing managers index for India was 55.5 in April while in march it was 55.4.
Findings of the index:
Manufacturing activity in the month of April was almost flat.
However, the input cost rose pushing the prices of the commodity.
April witnessed the steepest increase in input costs in the last seven years which inturn is responsible for sharpest upturn in output charges since October 2013.
Intensification of the COVID-19 crises has led to the slowest rate of increase in output and sales.
Exports from India increased for the eighth consecutive month in April and at the fastest rate since October 2020, due to an increase in International demand for Indian goods.
US-based Institute of Supply Management started releasing PMI in 1948.
PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity in the manufacturing as well as services sector.
It is a survey-based, perception based index. It asks the respondents about changes in their perception of some key business variables from the month before.
Firstly, separate indices for manufacturing and services sectors are calculated and then a composite index is constructed.
IHS Markit India released the Purchasing managers index.
It is a seasonally adjusted index.
If the outcome points are above 50, it means expansion in business activity and less than 50 denotes contraction.
An economy is believed to be expanding if the PMI for a month is higher than a previous month’s index.
It is released at the beginning of every month for the previous month.