“The Knowledge Library”

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“The Knowledge Library”

Knowledge for All, without Barriers…

 

An Initiative by: Kausik Chakraborty.
Knot🟢Why are there 12 Inches in a Foot?🟢Nanotechnology🟢नवरात्रि - Navratri🟢What is Stem Cell Research?🟢The Most Dangerous Tree🟢Extinct Animals of the World🟢जातक कथा: लक्खण मृग की कहानी | The Story of The Two Deer🟢जातक कथा: महाकपि का बलिदान | The Story of Great Monkey🟢जातक कथा: छद्दन्त हाथी की कहानी | Chaddanta Elephant🟢जातक कथा: दो हंसों की कहानी | The Story of Two Swans🟢जातक कथा: रुरु मृग | The Story of Ruru Deer🟢जातक कथा: चांद पर खरगोश | The Hare on The Moon🟢जातक कथा: महिलामुख हाथी | The Story Of Mahilaimukha Elephant🟢जातक कथा: बिना अकल के नक़ल की कहानी | Akal Ke Bina Nakal🟢जातक कथा: गौतम बुद्ध और अंगुलिमाल की कथा | Gautam Budha & Angulimal Ki Kahani🟢अलिफ लैला - शहरयार और शहरजाद की शादी की कहानी🟢अलिफ लैला - अमीना की कहानी🟢अलिफ लैला - गरीब मजदूर की कहानी🟢अलिफ लैला - भद्र पुरुष और उसके तोते की कहानी

“The Knowledge Library”

Knowledge for All, without Barriers……….
An Initiative by: Kausik Chakraborty.

The Knowledge Library

Purchasing Managers’ Index (PMI)

  • PMI is an indicator of business activity — both in the manufacturing and services sectors.
  • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
  • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
  • The PMI is compiled by IHS Markit based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

How is the PMI derived?

  • The PMI is derived from a series of qualitative questions.
  • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

How does one read the PMI?

  • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
  • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
  • If the figure is higher than the previous month’s then the economy is expanding at a faster rate.
  • If it is lower than the previous month then it is growing at a lower rate.

What are its implications for the economy?

  • 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.
  • Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
  • Central banks of many countries also use the index to help make decisions on interest rates.

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KAUSIK CHAKRABORTY

KAUSIK CHAKRABORTY

Founder Director

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