Manufacturing PMI

Why is it in the news
  • According to a private sector survey, manufacturing activity slowed to a six-month low of 52.6 in March due to lower levels of new orders and production.
  • A reading over 50 implies expansion while one below that denotes a contraction in activity.
More in the news
    • Report Findings:
      (1) Although operating conditions in the Indian manufacturing industry continued to improve, there was a widespread slowdown in growth.
      (2) Falling from 54.3 in February to a six-month low, the latest figure highlighted a loss of growth momentum.
      (3) Factory orders and production expanded at the slowest pace since last September while job creation eased to an eight-month low in March.
      • PMI:
        (1) PMI or a Purchasing Managers' Index (PMI) is an indicator of business activity- both in the manufacturing and services sectors.  
        (2) This index is prepared on the basis of a survey which is conducted among purchasing executives in over 400 companies.
        (3) Index over 50 shows expansion, while below 50 mean contraction.
        (4) Prepared by IHS Markit, this index is widely quoted to explain latest industrial situation in a nation.
      Source
      The Hindu, Business Today.




      Posted by Jawwad Kazi on 3rd Apr 2019
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