Purchasing Managers’ Index (PMI)
• A survey-based economic indicator designed to provide a timely insight into business conditions.
• Widely used
To anticipate changing economic trends in official data such as GDP.
An alternative measure to official data about economic
performance and business conditions.
Used by financial and corporate professionals to better understand economies and markets, and to uncover
opportunities.
• Compiled and produced globally by IHS Markit – for more than 40 economies worldwide.
• Originally compiled for manufacturing sector
only – later extended to include sectors – services, construction and retail.
Manufacturing PMI .
• A survey-based economic indicator designed to provide a timely insight into changing business conditions in the goods-producing sector.
• Weighted average of five indices
- New orders
- Output
- Employment
- Suppliers’ delivery times
- Inventories of goods
purchases. - News
- • India’s manufacturing output shrank in June
according to this article. - • PMI in May was 50.8.
- • June – slid to 48.1.
- • Companies are least optimistic and continue
to shed jobs. - • Buying levels – falling at a greater pace.
- • Weak demand reduction in production requirements.
- • COVID-19 restrictions – curtailed international
demand for Indian goods.
• Strict containment measures – negatively
impacted demand and led to the contractions in factory orders, production, exports and quantities of purchases.
• Capital goods – worst-affected area in June.
• Output of Capital goods declined at a steep rate due to a sharp fall in sales.
• Falling new orders, business closures and the
COVID-19 crisis triggered a reduction in output
among Indian manufacturers.
• Growth of new orders, production, exports and
input purchasing was interrupted in June lockdown.
Eduindex News 