Purchasing Managers' Index (PMI)

Prelims : Current Events of National and International Importance

Why in News?

According to the Purchasing Managers' Index (PMI), Indian services sector growth touched a 10-month high in June 2025 on a sharp upturn in new business.

• Findings - The HSBC India Services Index indicating a sharp increase in the services sector.
• A PMI score above 50 signifies growth, and June’s figure marked a ten-month high in sector expansion.
• Surge in New Business Orders - Significant rise in domestic orders and a moderate increase in export orders.
• Growth in exports came primarily from markets in Asia, the Middle East, and the U.S..
• Increase in Job Growth - Employment rose for consecutive months, with job creation continuing above its long-run average, though slowing slightly from May’s record levels.
• Margin Improvements - Input costs rose at a slower pace compared to the output charges, leading to improved margins.
• Consumer services saw the highest cost pressures, while the finance and insurance sectors noted the fastest increase in output charges.
• Outlook and Confidence - 18% of service providers remain optimistic about future growth in the next year, though this was the lowest level of confidence since mid-2022.
• Overall, service sector confidence dipped below the long-run average.
• Composite PMI Index - The index combines manufacturing and services data, showing a slowdown in both price increases and cost burdens.

Reference

The Hindu | Purchasing Managers' Index (PMI)