Syllabus: GS-III
Topic: Indian Economy
Issue: PMI.
Subject: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Context: India’s manufacturing activity slipped to an 18-month low in December 2023, as per the HSBC India Manufacturing Purchasing Managers’ Index.
Synopsis:
- The reading for December stood at 54.9Â compared to 56 in November. A reading of over 50 on the index indicates an expansion in activity.
- Factories’ output grew at the slowest pace since October 2022, with demand for certain types of products fading.
- The latest reading was above the long-run series trend, but contributed to the lowest quarterly average of 55.5 since the first quarter of fiscal year 2022-23.
| Purchasing Managers’ Index:·         leading economic indicator that tracks the health of a country’s manufacturing or service sector.
·         It’s based on monthly surveys of purchasing managers across various industries, who report on their perceptions of business              conditions. ·         A value above 50 indicates expansion, while below 50 signifies contraction. |
