PMI
- REPORTS AND INDICES
News:
Manufacturing PMI eased
to 5-month low in September
What's
in the news?
●
India’s manufacturing sector activity moderated to a five-month low in
September with new orders slowing down,
as per the seasonally adjusted S&P Global India Manufacturing Purchasing
Managers’ Index (PMI), which eased to 57.5 from 58.6 in August.
Key
takeaways:
●
A reading of 50 on the survey-based index reflects no change in activity
levels.
PMI:
●
Purchasing Managers’ Index (PMI) is an
economic indicator, which is derived after monthly
surveys of different companies.
●
The PMI is based on a monthly survey of
supply chain managers across 19
industries, covering both upstream and downstream activity.
Parameters:
●
The PMI is based on a monthly survey of
supply chain managers across 19 industries, covering both upstream and
downstream activity.
●
It covers both the manufacturing and service sectors.
Headline
PMI:
●
The headline PMI is a number from 0 to 100.
●
A PMI number greater than 50 indicates
expansion in business activity.
●
A number less than 50 shows contraction.
Significance
of PMI:
●
Good leading indicator of economic
activity.
●
Central banks of many countries also use
the index to help make decisions on interest rates.
●
Indication of corporate earnings and is
closely watched by investors as well as the bond markets.