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Purchasing Managers Index (PMI)

  • Vaid's ICS, Lucknow
  • 03, Sep 2021
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Why in News?

The PMI index has shown a declining trend in the month of august 2021.

What is  Purchasing Managers Index  PMI?

  • PMI or Purchasing Managers’ Index (PMI) is an indicator of business activity both in the manufacturing and services sectors.
  • It indicates the economic health and investor’s sentiments about the manufacturing and services sectors of the country.

 Publisher: PMI data is compiled by Markit Economics and published by the Japanese firm Nikkei. PMI is calculated separately for both Manufacturing (Manufacturing PMI) and Services sectors (Services PMI) and then a composite index is published.

How is it Compiled?

  • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
  • PMI is derived from a series of qualitative questions. Executives from a reasonably big sample, running into hundreds of firms are asked whether key indicators such as
    • (a) output
    • (b) new orders
    • (c) business expectations, and
    • (d) employment were stronger than the month before and are asked to rate them.

Expansion or Contraction points 

  • The index is the sum of the percentage of higher responses and half the percentage of unchanged responses.
  • The indices vary between 0 and 100 with a reading above 50 indicating an overall increase compared to the previous month and below 50 an overall decrease.
  • Higher the difference from the Mid-point i.e. 50, greater the expansion or contraction.

Facts for Prelims:

E-Gopala App

  • The web version of the e-GOPALA application developed by the National Dairy Development Board (NDDB) has been launched to aid dairy farmers.


  • e-GOPALA provides a platform to farmers in the country for managing livestock including buying and selling of disease-free germplasm in all forms (semen, embryos, etc), availability of quality breeding services (Artificial Insemination, veterinary first aid, vaccination, treatment etc) and guiding farmers for animal nutrition, treatment of animals using appropriate ayurvedic medicine/ethnoveterinary medicine.

Safe city index 2021

The fourth edition of the ‘Safe Cities Index 2021’ was released by the Economist Intelligence Unit (EIU) in August 2021.

  1. Important Facts: The index ranks 60 cities in 76 indicators covering 5 areas namely digital security, health security, infrastructure security, personal safety and environmental security.
  2. The capital of Denmark ‘Copenhagen’ is the safest city in the world. Yangon (Myanmar) is placed last (60th).
  3. The top cities in the index are- 1- Copenhagen, 2- Toronto, 3- Singapore, 4- Sydney, 5- Tokyo, 6- Amsterdam, 7- Wellington, 8- Hong Kong, 9- Melbourne, 10- Stockholm.
  4. Two Indian cities are included in this index out of 60 cities. Delhi is at 48th position and Mumbai at 50th.