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With reference to Purchasing Managers’ Index(PMI), consider the following statements:
1. It is a survey-based measure.
2. It is calculated for the services sectors only.
3. PMI is compiled by IHS Markit for economies worldwide.
Which of the statements given above is/are correct ?
  • a)
    2 and 3 only
  • b)
    1 and 2 only
  • c)
    1 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
With reference to Purchasing Managers’ Index(PMI), consider the ...
  • It is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month. Hence, statements 1 is correct.
  • The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.
  • It is calculated separately for the manufacturing and services sectors and then a composite index is also constructed. Hence, statement 2 is not correct.
  • PMI is compiled by IHS Markit for more than 40 economies worldwide.
    • IHS Markit is a global leader in information, analytics and solutions for the major industries and markets that drive economies worldwide. Hence, statement 3 is correct.
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With reference to Purchasing Managers’ Index(PMI), consider the following statements:1. It is a survey-based measure.2. It is calculated for the services sectors only.3. PMI is compiled by IHS Markit for economies worldwide.Which of the statements given above is/are correct ?a)2 and 3 onlyb)1 and 2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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