In the month of April, Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose from 51 to 51.6 in April and services recorded jump to 51.4 from 50.3 in March.
In the month of April, Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose from 51 to 51.6 in April and services recorded jump to 51.4 from 50.3 in March. Both numbers indicate towards improving health of the Indian economy. Here we will understand how manufacturing and services PMI data helps in understanding the economic scenario of the country.
The manufacturing PMI is based around five key indicators namely new orders, inventory levels, production, supplier deliveries and the employment environment. The primary purpose of the PMI is to provide information about current business conditions to company decision makers, analysts and purchasing managers. The latest Manufacturing PMI data indicates that there is a modest upturn that was somehow weaker than the series trend. Supported by faster expansion in the output production and new orders, manufacturing conditions are greener in the month of April. As production requirements increased, job creation also got stimulated. On the other hand, pressures due to inflation continued to ease in April.
The Markit surveys for services PMI cover transport and communication, financial intermediaries, business and personal services, computing & IT and hotels and restaurants.The latest data indicates there is a faster expansion in output at Indian service firms than in the prior month. It has generally been recorded that a greater inflows of new work helped to bolster activity. A better services PMI data shows rising business activity which is supported by new growth. It also shows job creation has also improved. Pressures due to inflation has also eased