Purchasing Managers' Index (PMI)
Concept and Methodology
The Purchasing Managers' Index is a composite leading economic indicator derived from monthly surveys of purchasing managers across manufacturing and services firms. It is compiled by S&P Global (formerly IHS Markit) and released for India in association with HSBC under the "HSBC India PMI" branding.
A PMI reading above 50 signals expansion (business conditions improving); below 50 signals contraction; exactly 50 means no change. The further from 50, the stronger the pace of expansion or contraction.
The PMI is derived from five equally-weighted sub-indices: New Orders (30%), Output (25%), Employment (20%), Suppliers' Delivery Times (15%), and Stocks of Items Purchased (10%). Being a survey-based, forward-looking indicator, PMI is released before official GDP data, making it a valuable real-time gauge of economic momentum.
- PMI components (Manufacturing): New Orders, Output, Employment, Supplier Delivery Times, Stocks
- PMI components (Services): Business Activity, New Business, Employment, Prices Charged
- Survey sample: ~400 manufacturing firms and ~400 services firms in India
- Frequency: Monthly (Flash = preliminary mid-month estimate; Final = end-month full survey)
- Historical context: India's Manufacturing PMI has been consistently above 50 since July 2021 — over 3.5 years of uninterrupted expansion
- Published by: S&P Global (formerly IHS Markit); sponsored by HSBC for India
● Tracked since February 20, 2026 · last seen July 02, 2026 · updates as the daily brief publishes