Updated By: LatestGKGS Desk
India’s Manufacturing Growth Hike to 6 Months High in June 2018
India’s manufacturing growth hike to 6 months high in June 2018- Detail Highlights, About
According to Nikkei Manufacturing Purchasing Managers’ Index (PMI), generated by IHS Markit, India’s manufacturing growth jumps to a six-month high in June 2018.
India's Manufacturing PMI rose to 53.1 in June 2018 from 51.2 in May 2018, the highest since December 2017.
This is the 11th consecutive month that the manufacturing PMI remained above the 50-point mark. The reading above 50 on index denotes expansion and less than that indicates contraction in activities.
About Purchasing Managers’ Index (PMI)
PMI is an indicator of business activity-both in the manufacturing and services sectors. It is a survey-based measure that asks respondents about changes in their perception of some key business variables from a month before.
PMI is calculated separately for manufacturing and services sectors and then the composite index is constructed.
PMI is usually released at the start of a month, much before most of the official data on industrial output, manufacturing and GDP growth is made available. It is, therefore, considered as a good leading indicator of economic activity. Manufacturing growth measured by PMI is considered a good indicator of industrial output.
