Q. With reference to the Purchasing Managers' Index (PMI), which of the following statements is/are correct?
A Purchasing Managers’ Index (PMI) above 50 indicates economic expansion in the services sector.
It is an indicator of business activity in the manufacturing sector only.
It is published by FICCI in association with Quality Council of India
Select the correct option from the codes given below: Answer:
None
Notes:
A Purchasing Managers’ Index (PMI) above 50 indicates economic Contraction in the services sector. Incorrect: A PMI value above 50 indicates expansion in economic activity, while a value below 50 indicates contraction.
It is an indicator of business activity in the manufacturing sector only. Incorrect: PMI or Purchasing Managers’ Index (PMI) is an indicator of business activity both in the manufacturing and services sectors. It indicates the economic health and investor’s sentiments about the manufacturing and services sectors of the country.
It is published by FICCI in association with Quality Council of India. Incorrect: PMI data is compiled by Markit Economics and published by the Japanese firm Nikkei. PMI is calculated separately for both Manufacturing (Manufacturing PMI) and Services sectors (Services PMI) and then a composite index is published.