The Purchasing Managers’ Index (PMI) is a monthly economic indicator that provides information about the current and future conditions of a business. It is based on surveys of product managers, who are responsible for buying the materials needed to manufacture a company’s products.
- There are two types of PMI:
- Manufacturing PMI and Services PMI. The PMI for India is based on a survey of 500 manufacturing companies and uses five individual indexes
The PMI is used by investors, analysts, and decision-makers to:
- Understand what purchasing managers think about the future of their industry.
- Predict economic and market trends.
- Gauge economic performance and business conditions.
- Determine if the market conditions are expanding, contracting, or staying the same.
Key Highlights:
- The Purchasing Managers’ Index increased to a four-month high of 59.3 in the month of December, powered by buoyant demand.
- This has led to an increment in new business flows having sustained output growth but attracting more workers.
- The PMI number released by HSBC stood at 58.4 in November.
- The survey supports job creation across the service economy on account of new business growth, positive forecasts, and rising capacity pressures.
