CrackitToday App

Purchasing Managers Index

Purchasing Managers Index:

India’s manufacturing sector continued to perform better with S&P Global Purchasing Managers’ Index (PMI) rising to 56 in November against 55.5 in October.

  • Purchasing Managers’ Index is an indicator of business activity – both in the manufacturing and services sectors.
  • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
  • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
  • The index helps in determining whether the market conditions, as seen by purchasing managers, is expanding, contracting or staying the same.
  • There are two types of PMI — Manufacturing PMI and Services PMI.