‘April Flash PMI signals quickening in combined economic output’

Contact Counsellor

Last Updated25/04/2024

Combined output from India’s manufacturing and services sectors may have grown at the fastest pace in almost 14 years this month.
the services activity rising to a three-month high, as per the HSBC Flash Purchasing Managers’ Index (PMI).

It is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month.
Purpose: To provide information about current and future business conditions to company decision makers, analysts, and investors.
It is calculated separately for the manufacturing and services sectors and then a composite index is also constructed.
It does not capture informal sector activity.
The PMI is a number from 0 to 100.
- A print above 50 means expansion, while a score below that denotes contraction.
- A reading at 50 indicates no change.

It is considered a good leading indicator of economic activity.
- It is usually released at the start of every month.
Central banks of many countries also use the index to help make decisions on interest rates.
It also gives an indication of corporate earnings and is closely watched by investors as well as the bond markets.
A good reading of index enhances the attractiveness of an economy vis-a-vis another competing economy.