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With reference to the Purchasing Managers’ Index (PMI), consider the following statements:
1. It measures activity at the purchasing or input stage.
2. It captures 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 'A'. Can you explain this answer?
Most Upvoted Answer
With reference to the Purchasing Managers’ Index (PMI), consider...
India’s manufacturing sector expanded in the month of May and sustained strong growth despite historically high inflation, according to a survey.
  • Purchasing Managers’ Index (PMI) is an economic indicator, which is derived after monthly surveys of different companies.
  • It measures activity at the purchasing or input stage.
  • In this sense, it is very different from industrial production which is indicative of actual production.
    • E.g., the Index of Industrial Production (IIP) measures output.
  • There are two types of PMI — Manufacturing PMI and Services PMI.
  • The index shows trends in both the manufacturing and services sector.
  • PMI does not capture informal sector activity.
Hence only statement 1 is correct.
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With reference to the Purchasing Managers’ Index (PMI), consider the following statements:1. It measures activity at thepurchasing or input stage.2. It captures 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 'A'. Can you explain this answer?
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With reference to the Purchasing Managers’ Index (PMI), consider the following statements:1. It measures activity at thepurchasing or input stage.2. It captures 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 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Purchasing Managers’ Index (PMI), consider the following statements:1. It measures activity at thepurchasing or input stage.2. It captures 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 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Purchasing Managers’ Index (PMI), consider the following statements:1. It measures activity at thepurchasing or input stage.2. It captures 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 'A'. Can you explain this answer?.
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