Context
- The S&P Global India Manufacturing PMI surged to 57.8 in December 2022 from 55.7 in the prior month of November, pointing to the highest reading since October 2020.
About Purchasing Managers’ Index (PMI)
- The PMI data is released at the beginning of every month.
- PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity– both in the manufacturing and services sectors.
- PMI is a number from 0 to 100. PMI above 50 represents an expansion, under 50 represents a contraction, and reading at 50 indicates no change.
- The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available. It is, therefore, considered a good leading indicator of economic activity.
Source: ET
