Purchasing Managers’ Index (PMI) Flashcards
1
Q
What is it?
A
indicator of business activity — both in the manufacturing and services sectors.
[BUSINESS ACTIVITY INDICATOR]
2
Q
Working?
A
It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before.
[1 MONTH MADHE KEY BUSINESS INDICATORS KITI BADALALE YACHA SURVEY]
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.
[ABOVE 50 EXPANSION,BELOW 50 CONTRACTION]
