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Manufacturing PMI

About Manufacturing PMI

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What is manufacturing PMI?

Purchasing Managers’ Index or PMI is an economic indicator, which is derived after monthly surveys of different companies. The index shows trends in both the manufacturing and services sector. The index helps in determining whether the market conditions, as seen by purchasing managers, is expanding, contracting or staying the same. It is used to provide information regarding the current and future business conditions.
PMI is one of the closely watched indicators of business activity and helps in predicting the economic health of a country. There are two types of PMI — Manufacturing PMI and Services PMI. A combined index is also made using both manufacturing PMI and services PMI.
 

How is the manufacturing PMI derived?

The PMI is derived by sending fact-based questions to a large number of companies in the concerned sector. For manufacturing PMI, the questionnaire is sent to manufacturing companies. The questions are factual in nature and the survey is not meant for opinions, intentions, or expectations. The questions are related to 5 key variables. The variables with their weights in the index are — new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stock of items purchased (10%). The surveys are conducted on a monthly basis.
 
A PMI number greater than 50 indicates expansion in business activity. A number less than 50 shows contraction. The rate of expansion is also judged by the difference from the mid-point (50) and also by previous month’s data.
 
PMI was started for the first time by US-based Institute for Supply Management (ISM) in 1948. The Singapore Institute of Purchasing and Materials Management (SIPMM) produces the index for Singapore, while IHS Markit produces the index for 30 other countries. IHS Markit produces the PMI for India. The IHS Markit India Manufacturing Purchasing Managers’ Index measures the performance of India’s manufacturing sector. The index is derived after a survey of 500 manufacturing companies.
 
PMI is a good indicator of the economic activity in any country. Usually PMI is released before other indexes such as GDP, industrial output. PMI gives an idea about the direction the economy is taking and helps economists in predicting the manufacturing activity in the country. The manufacturers and suppliers use the index to decide on their production needs based on new orders in the coming months. The index also helps investors who are looking to invest in the stock markets as it helps in determining the economic health of the country.

Latest Updates on Manufacturing PMI

In the previous session, the Sensex settled 843.16 points or 1.04 per cent higher at 82,133.12. Similarly, the Nifty ended higher 219.60 points or 0.89 per cent at 24,768.30

Updated On: 16 Dec 2024 | 7:20 AM IST

The rate of expansion is second-weakest in 11 months, the figure stood at 56.5 in January

Updated On: 03 Dec 2024 | 12:16 AM IST

HSBC final India Manufacturing PMI for November matches September's eight-month low of 56.5

Updated On: 02 Dec 2024 | 10:47 AM IST

HSBC Flash November PMI: Composite output index rises to 59.5, up from October's final reading of 59.1. Manufacturing PMI dips to 60.2, services PMI rises to 59.2

Updated On: 22 Nov 2024 | 11:42 AM IST

The survey also noted that new export orders exhibited stronger growth, following the weakest increase in a year and a half during September, with gains reported in new contracts

Updated On: 04 Nov 2024 | 11:37 PM IST

Investors will closely monitor quarterly earnings reports alongside manufacturing, composite, and services data for October

Updated On: 24 Oct 2024 | 7:39 AM IST

Indian manufacturers registered softer increases in new business and output during August

Updated On: 02 Sep 2024 | 12:17 PM IST

The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell for a second month in August, dropping to 57.5 from July's 58.1

Updated On: 02 Sep 2024 | 11:17 AM IST

Pace of expansion remains sharp and indicates strong demand and favourable market conditions, HSBC survey

Updated On: 22 Aug 2024 | 11:42 PM IST

The flash services PMI index rose to 60.4 this month from 60.3 in July, while a preliminary manufacturing PMI showed strong growth, albeit slightly weaker than last month

Updated On: 22 Aug 2024 | 11:48 AM IST

It was a broadbased downturn in the euro zone while a slump in China's manufacturing activity suppressed its Asian neighbours

Updated On: 01 Aug 2024 | 3:55 PM IST

However, international sales expanded at the fastest pace in over 13 years, while job creation remained robust, and selling prices saw the steepest increase since October 2013

Updated On: 01 Aug 2024 | 10:43 PM IST

A figure above 50 in the index denotes expansion and that below signifies contraction

Updated On: 01 Jul 2024 | 11:50 PM IST

But the sector remains in expansionary territory in May. Manufacturing employment rose to one of the greatest extents seen since data collection started in March 2005

Updated On: 03 Jun 2024 | 11:31 PM IST

The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, dipped to 57.5 in May from April's 58.8, below a preliminary estimate of 58.4

Updated On: 03 Jun 2024 | 10:43 AM IST

Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the NDA expected to win a big majority in the polls

Updated On: 02 Jun 2024 | 12:11 PM IST

Driven by robust demand in both manufacturing and service sectors, PMI in April climbed to 62.2 from March's final reading of 61.8

Updated On: 23 Apr 2024 | 12:20 PM IST

The manufacturing PMI has remained above the 50-mark for more than 30 consecutive months

Updated On: 02 Apr 2024 | 11:05 AM IST

HSBC Flash India Composite PMI (Purchasing Managers' Index) Output Index rises to 61.3

Updated On: 21 Mar 2024 | 11:22 PM IST

India's HSBC India Manufacturing PMI came in at 56.9 in February, the fastest since October last year when it was 55.5

Updated On: 01 Mar 2024 | 10:48 AM IST