The Purchasing Managerís Index (PMI) is a measure of the economic performance of a country. The PMI is designed to cover the performance of the manufacturing sector and the service sector activities. The survey asks the respondents about their perceptions about changes in major business variables.
How PMI is calculated and derived?
The index is first calculated separately for the manufacturing and service sector and then a composite index is released.
The index is derived from the answers provided by the top executives of various firms regarding major indicators like output, employment, business expectations, new orders, etc.
Purchasing Managerís Index (PMI) November 2020
As per the Purchasing Managerís Index (PMI) of November 2020, the manufacturing sector of the country has come to a three-month low. The sector has a score of 56.3 in November on the PMI index. The score of the sector in October was 58.9. This is contributed to increasing COVID-19 cases.
Outputs in the sector have expanded at a much slower pace and new orders are the lowest in the last 3 months. In addition to this, employment has continued to decline in the sector.