UPSC Exam > UPSC Questions > Consider the following statements regarding t...
Start Learning for Free
Consider the following statements regarding the Purchasing Managers’ Index:
- It is an indicator of business activity for both the manufacturing and services sectors.
- It is published on a monthly basis.
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 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements regarding the Purchasing Managers&rs...
Explanation:
Statement 1: It is an indicator of business activity for both the manufacturing and services sectors.
- The Purchasing Managers' Index (PMI) is indeed an indicator of business activity for both the manufacturing and services sectors. It provides insight into the economic health of the manufacturing and services industries by surveying purchasing managers on various factors such as new orders, production levels, employment, and supplier deliveries.
Statement 2: It is published on a monthly basis.
- The PMI is typically published on a monthly basis by various organizations such as the Institute for Supply Management (ISM) in the United States and IHS Markit in other countries. This frequency allows for timely updates on the performance of the manufacturing and services sectors, enabling businesses and policymakers to make informed decisions based on current economic conditions.
Therefore, both statements 1 and 2 are correct regarding the Purchasing Managers' Index. It serves as a valuable tool for monitoring business activity in both the manufacturing and services sectors and is updated regularly to provide up-to-date information on economic trends.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements regarding the Purchasing Managers&rs...
India’s manufacturing sector continued to perform better with S&P Global Purchasing Managers’ Index (PMI) rising to 56 in November against 55.5 in October.
- It is an indicator of business activity -- both in the manufacturing and services sectors.
- It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
- The index helps in determining whether the market conditions, as seen by purchasing managers, is expanding, contracting or staying the same.
- There are two types of PMI — Manufacturing PMI and Services PMI.
How is the manufacturing PMI derived?
- It is derived by sending fact-based questions to a large number of companies in the concerned sector.
- The questions are related to 5 key variables. The variables with their weights in the index are — new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stock of items purchased (10%).
- The surveys are conducted on a monthly basis.
- A PMI number greater than 50 indicates expansion in business activity.
- A number less than 50 shows contraction. The rate of expansion is also judged by the difference from the mid-point (50) and also by previous month’s data.
- PMI data for India is released by S&P Global - a global major in financial information and analytics.
- Earlier PMI data is India was released by IHS Markit before its merger with S&P.
- The Manufacturing PMI measures the performance of India’s manufacturing sector and is derived after a survey of approx. 500 manufacturing companies.
Hence both statements are correct.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer?
Question Description
Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. 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 Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer?.
Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. 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 Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer?, a detailed solution for Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements regarding the Purchasing Managers’ Index: It is an indicator of business activity for both the manufacturing and services sectors. It is published on a monthly basis.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 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup