• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Advertisement
  • Home
  • Economy
  • Foreign Affairs
  • Science & Tech
  • Environment
  • Law & Policy
  • History
No Result
View All Result
  • Home
  • Economy
  • Foreign Affairs
  • Science & Tech
  • Environment
  • Law & Policy
  • History
No Result
View All Result
  • 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
JournalsOfIndia
No Result
View All Result
Home Economy

Purchasing Managers’ Index

October 2, 2020
in Economy
Reading Time: 2min read
0
Purchasing Managers’ Index
0
SHARES
91
VIEWS
Share on TelegramShare on Facebook

In News

The Purchasing Managers’ Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. 

More About PMI

  • The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.
  • The Purchasing Managers Index (PMI) is a measure of the prevailing direction of economic trends in manufacturing.
  • The PMI is based on a monthly survey of supply chain managers across industries, covering both upstream and downstream activity.
  • The value and movements in the PMI and its components can provide useful insight to business decision makers, market analysts, and investors, and is a leading indicator of overall economic activity in the country.
  • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
  • The PMI is derived from a series of qualitative questions. Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.
  • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction. Higher the difference from this mid-point greater the expansion or contraction.
  • The rate of expansion can also be judged by comparing the PMI with that of the previous month data. If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.
  • The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available. It is, therefore, considered a good leading indicator of economic activity.
  • The PMI also gives an indication of corporate earnings and is closely watched by investors as well as the bond markets. A good reading enhances the attractiveness of an economy vis-a-vis another competing economy.
Source: Economic Times & Investopedia
Tags: PRELIMS

Related Posts

Reforms in Mining

Reforms in Mining

January 15, 2021
RBI sets up Working Group on Digital Lending

RBI sets up Working Group on Digital Lending

January 15, 2021
What are Debentures?

What are Debentures?

January 15, 2021
Modified Scheme to Enhance Ethanol Distillation Capacity

Modified Scheme to Enhance Ethanol Distillation Capacity

January 15, 2021
National Migrant Information System (NMIS)

National Migrant Information System (NMIS)

January 14, 2021
Toy Manufacturing Clusters

Toy Manufacturing Clusters

January 14, 2021
RBI’s Financial Stability Report

RBI’s Financial Stability Report

January 14, 2021
Migrant Integration Policy Index(MIPEX) -2020

Migrant Integration Policy Index(MIPEX) -2020

January 14, 2021
Payment Infrastructure Development Fund (PIDF) scheme

Payment Infrastructure Development Fund (PIDF) scheme

January 13, 2021
Risk Based Internal Audit (RBIA) Framework

Risk Based Internal Audit (RBIA) Framework

January 13, 2021
Please login to join discussion

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society

Browse by Tags

BIG PICTURE GS-1 GS-2 GS-3 GS-4 KURUKSHTERA MAINS NEWS PAPER PIB PRELIMS RSTV YOJANA
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society

Browse by Tag

BIG PICTURE GS-1 GS-2 GS-3 GS-4 KURUKSHTERA MAINS NEWS PAPER PIB PRELIMS RSTV YOJANA

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • Prelims Snippets
  • Mains Articles
  • Economy
  • Society
  • Foreign Affairs
  • Science & Tech
  • Environment
  • Agriculture
  • History
  • Law & Policy
  • Security
  • Course Portal
  • Prelims Test Portal
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In