{"id":14354,"date":"2026-05-27T07:41:35","date_gmt":"2026-05-27T07:41:35","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/purchasing-managers-index-pmi\/"},"modified":"2026-05-27T07:41:35","modified_gmt":"2026-05-27T07:41:35","slug":"purchasing-managers-index-pmi","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/purchasing-managers-index-pmi\/","title":{"rendered":"Purchasing Managers Index PMI"},"content":{"rendered":"

The Purchasing Managers Index<\/a> (PMI) is a monthly survey-based economic indicator that measures the business activity levels of purchasing managers in the manufacturing and services sector<\/a>s. A PMI above 50 indicates expansion; below 50 indicates contraction.<\/p>\n

What Is the PMI?<\/h2>\n

PMI surveys purchasing managers at hundreds of companies every month and asks them about changes in:<\/p>\n

– New orders received
\n– Output levels
\n– Employment
\n– Supplier delivery times
\n– Input prices<\/p>\n

Each factor receives a score: if it improved, deteriorated, or stayed the same. The index is then calculated so that 50 represents no change from the previous month.<\/p>\n

Interpreting PMI<\/h2>\n

| PMI Range | Economic Signal |
\n|———–|—————-|
\n| Above 55 | Strong expansion |
\n| 50-55 | Moderate expansion |
\n| Exactly 50 | No change |
\n| 45-50 | Moderate contraction |
\n| Below 45 | Strong contraction |<\/p>\n

India’s PMI: Who Publishes It?<\/h2>\n

In India, PMI surveys are conducted by S&P Global (formerly IHS Markit):<\/p>\n

– **Manufacturing PMI**: covers the manufacturing sector; released on the first business day of each month
\n– **Services PMI**: covers the services sector; released a few days after manufacturing PMI
\n– **Composite PMI**: combines manufacturing and services<\/p>\n

Why PMI Matters<\/h2>\n

– **Leading indicator**: surveys purchasing managers about what they see coming, not historical data
\n– **Quick release**: published within a day or two of the survey month ending, before GDP<\/a> or industrial production data
\n– **Sentiment indicator**: captures business confidence, which drives investment and hiring decisions<\/p>\n

India’s Recent PMI Performance<\/h2>\n

India’s Manufacturing PMI has consistently been above 55 through 2023-24, reflecting strong industrial activity. India’s Services PMI has been among the highest globally in the same period, reflecting the strength of IT, hospitality, and financial services.<\/p>\n

Key Takeaways<\/h2>\n

– PMI is a monthly survey index measuring business activity; above 50 = expansion, below 50 = contraction
\n– Covers new orders, output, employment, and input prices for manufacturing and services
\n– India’s PMI is published by S&P Global; manufacturing PMI is released on the first business day monthly
\n– PMI is a leading indicator, giving advance notice of economic trends before GDP data arrives
\n– India’s PMI has been strong (55+) through 2023-24, reflecting broad-based economic momentum<\/p>\n","protected":false},"excerpt":{"rendered":"

The Purchasing Managers Index (PMI) is a monthly survey-based economic indicator that measures the business activity levels of purchasing managers in the manufacturing and services sectors. A PMI above 50 indicates expansion; below 50 indicates contraction. What Is the PMI? PMI surveys purchasing managers at hundreds of companies every month and asks them about changes […]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-14354","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"The Purchasing Managers Index (PMI) is a monthly survey-based economic indicator that measures the business activity levels of purchasing managers in the manufacturing and services sectors. A PMI above 50 indicates expansion; below 50 indicates contraction. What Is the PMI? PMI surveys purchasing managers at hundreds of companies every month and asks them about changes…","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14354\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}