• UGI USER
  • May 03, 2024
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APRIL PMI SIGNALS SECOND-BEST GAIN IN MANUFACTURING SECTOR IN 42 MONTHS

Why in the news?

India’s manufacturing sector records strong performance in April, with robust domestic demand driving growth, according to HSBC’s PMI survey.

source:researchgate

About Manufacturing Activity :

  • HSBC India Manufacturing PMI indicates slight easing in April but remains at 58.8, marking the second-best improvement in 42 months.
  • New orders surge at the second-fastest pace in almost 40 months, driven by robust domestic demand outpacing exports.
  • Output growth moderates but still ranks as the second-fastest in 42 months, reflecting sustained momentum in the manufacturing sector.
About Purchasing Managers Index (PMI) Overview:

●   Survey-based measure gauging changes in key business variables compared to the previous month.

●   Aims to inform company decision-makers, analysts, and investors about current and future business conditions.

●   Calculated separately for manufacturing and services sectors, with a composite index also created.

●   Ranges from 0 to 100; above 50 indicates expansion, below signifies contraction, and 50 indicates no change.

●   Higher PMI than the previous month suggests economic contraction; usually released monthly as a leading indicator of economic activity.

●   Compiled by IHS Markit for over 40 economies worldwide, a global leader in information, analytics, and solutions, and part of S&P Global.