According to the latest Purchasing Managers’ Index (PMI) survey, conducted by the financial information services provider Markit, the PMI in the manufacturing sector rose to 52.1 points in May 2016. This indicates a strong growth from the 51 points seen during the previous month.
The monthly PMI survey, takes into account various factors, such as rise in a company’s inventories, purchase of raw materials, production levels, new and existing orders, etc. while tabulating its index. A score higher than 50 points indicates an expansion in the sector, whereas a score lower than 50 points indicates a contraction.