PMI March 2021: In the growing cases of Corona virus, work in factories is getting affected. In March, the manufacturing PMI (Purchase Manager Index) was at a 7-month low. In March it has been 55.4, while in February the PMI was 57.5. According to IHS market data, factory production in March has come down to the lowest level in 7 months. That is, the effect of imposing restrictions at different places across the country is clearly visible in the factory output.
Let us know that the second wave of Corona virus is becoming dangerous in the country. This can be gauged from the fact that more than 1 lakh cases of corona virus have been reported in the last 24 hours. This is the highest increase of 1 day in the country so far. The second wave of Corona virus had started since March, which has seen the effect on PMI. It is believed that there may be a decrease in manufacturing activities in April, because now the strictness is increasing.
What is PMI
PMI is an indicator to measure the economic condition of the manufacturing sector. The PMI is used to explore the business and manufacturing environment. The PMI is based on a number of private sector activities, including the service sector. This 5 major factor is based on new orders, production, supply delivery, inventory level and employment environment. The economic condition of the country is assessed through the PMI. This gives accurate indication about the economy in advance.
Staying above 50 is considered to be a better condition for the economy, while staying below 50 means that the economy is in trouble. The pace of increase in input and output costs has been slow in the last month. Inflation moderated in February and remained within the 2-6 per cent target of the RBI.