Flash PMI signals rebound in economic momentum in Jan.
- Private sector industrial and services activity regained momentum this month as per a new HSBC Flash India PMI
Purchasing Managers Index (PMI)
- It is a survey-based measure that asks the respondents about changes in their perception of key business variables as compared with the previous month.
- It is an index of the prevailing direction of economic trends in the manufacturing and service sectors.
Objective
- It is to provide information about current and future business conditions to company decision makers, analysts, and investors.
- It is calculated separately for the manufacturing and services sectors and then a composite index is also constructed.
- The PMI is a number from 0 to 100.
- A print above 50 means expansion, while a score below that denotes contraction.
- A reading at 50 indicates no change.
- If the PMI of the previous month is higher than the PMI of the current month, it represents that the economy is contracting.
- It is usually released at the start of every month.
- It is, therefore, considered a good leading indicator of economic activity.
Prelims Takeaway
- Purchasing managers’ Index (PMI)
- Core Sectors