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Manufacturing activity slows in July
Why in the news ?
- According to a monthly survey, country’s manufacturing sector activity moderated in July amid softer increase in output, new orders and employment.
Details
- The Nikkei India Manufacturing Purchasing Managers Index (PMI) stood at 52.3 in July, down from 53.1 in June.
- This is the 12th consecutive month that the manufacturing PMI remained above the 50point mark.
- In PMI parlance, a point above 50 means expansion, while a score below denotes contraction.
- Although modest, the latest improvement in the health of the manufacturing sector was the second strongest after June.
- Domestic and export orders rose for the ninth straight month in July.
What is PMI ?
- PMI or a Purchasing Managers' Index (PMI) is an indicator of business activity -- both in the manufacturing and services sectors.
- It is a survey-based measures 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.
- 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.
Source
The Hindu