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With reference to the Purchasing Manager Index (PMI), consider the following statements:
1. It is compiled by NITI Aayog.
2. It does not capture informal sector activity.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
With reference to the Purchasing Manager Index (PMI), consider the fol...
As per the Manufacturing Purchasing Managers’ Index (PMI) data for India, India’s manufacturing activity grew at a slower pace in the country in March 2022 compared to February.
  • The India Manufacturing PMI, compiled by S&P Global, is based on data compiled from monthly survey responses by purchasing managers in more than 400 manufacturing companies, on various factors that represent demand conditions. It is commonly referred to as S&P Global India Manufacturing PMI.
  • PMI measures activity at the purchasing or input stage. It is very different from industrial production which is indicative of actual production. For example, the Index of Industrial Production (IIP) measures output.
    The PMI is constructed separately for manufacturing and services sector, but the manufacturing sector holds more importance.
  • PMI does not capture informal sector activity.
Hence only statement 2 is correct.
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With reference to the Purchasing Manager Index (PMI), consider the following statements:1. It is compiled by NITI Aayog.2. It does not capture informal sector activity.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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