What is PMI?

• Purchasing Managers’ Index is an economic indicator which indicates the business activity & economic health of both the manufacturing and service sectors.
• PMI of India is compiled by S&P Global, a financial information and analytics business company.
• PMI is an investor sentiment tracking index and is more dynamic in nature. It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before. 
• Variables used for calculating the PMI are: Output, New Orders, Employment, Input Costs, Output Prices, Backlogs of Work, Export Orders, Quantity of Purchases, Suppliers’ Delivery Times, Stocks of Purchases and Stocks of Finished Goods.

How to read PMI?

• While PMI >50 implies an expansion of business and economic activity, PMI <50 means contraction.

Why in News?

• Manufacturing activity as measured by the Purchasing Managers Index (PMI) climbed to an eight month high of 58.1 in March 2025.

https://www.thehindu.com/business/Economy/indias-manufacturing-sector-growth-hits-8-month-high-in-march-2025-pmi/article69403047.ece