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India’s PMI surges to 3 month high

Amidst the fears of economic slowdown driven by the annual growth for FY 2018-19 and quarterly growth figures (January-March, 2019) hitting a 5 year low, there is a sign of recovery in the industrial sector. For the first time in the last 3 months, PMI rose from 51.8 in April’19 to 52.7 in May. Growth was led primarily by consumer goods.
PMI is prepared by IHS Markit on the basis of a survey, which is conducted among purchasing executives in over 400 companies which are divided into 8 broad categories. These include basic metals, chemicals and plastics, electrical and optical, food and drink, mechanical engineering, textiles clothing, timber and paper, and transport. It is also likely that the Monetary Policy Committee (RBI) will go for a further rate cut in the light of the current scenario.