Pmi

 Purchasing Managers’ Index (PMI)

◇ PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity — both in the manufacturing and services sectors.

◇ It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before.

◇ It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.

◇ 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.