Purchasing Managers' Index (PMI)
Methodology and Significance
The Purchasing Managers' Index (PMI) is a leading economic indicator derived from monthly surveys of procurement and supply executives (purchasing managers) in private sector companies. It is "leading" because purchasing managers make forward-looking decisions — ordering inputs before production begins — making the index a predictor of near-term economic activity rather than a lagging measure.
- PMI is compiled by S&P Global (formerly IHS Markit) for India under the HSBC brand name.
- The PMI is based on five weighted components: New Orders (30%), Output (25%), Employment (20%), Supplier Delivery Times (15%), Stocks of Purchases (10%).
- Interpretation: PMI above 50 = expansion; PMI below 50 = contraction; PMI at 50 = no change.
- The degree of reading above 50 indicates the speed of expansion — 56.9 represents a strong expansion.
- India also publishes a separate Services PMI and a Composite PMI (combining manufacturing and services).
- India's Manufacturing PMI has consistently been above 50 for over 35 consecutive months as of early 2026, reflecting an extended expansion cycle.
- Unlike GDP data (which is quarterly and published with a lag), PMI is monthly and near real-time, making it closely watched by investors, RBI, and the Finance Ministry.
● Tracked since February 20, 2026 · last seen July 02, 2026 · updates as the daily brief publishes
23 Jun '26
India's Private Sector Growth Eases to Three-Month Low: Reading the June 2026 PMI Data
Economics
23 Apr '26
Early Economic Deceleration Signals in India: Sectoral Impacts of the West Asia Conflict
Economics
02 Apr '26
India's Manufacturing PMI Falls to 53.9 in March 2026: Lowest in Nearly Four Years
Economics
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