With 55.3 PMI, Highest Manufacturing Activity In Eight Years Recorded In January

The manufacturing activity in India expanded at its quickest pace in around eight years in the month of January on surge in new business and production, reports Economic Times.

The Purchasing Managers' Index (PMI) measured by IHS Markit surged from 52.7 in December 2019 to a figure of 55.3 in January, which is the highest tally recorded in manufacturing activity since February 2012.

The PMI results displays a notable turnaround in the demand slowdown, input buying, sales, production and employment as frms begin to rebuild their inventories as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business, said Pollyanna de Lima, principal economist at IHS Markit.

The surge in manufacturing activity in January was led by the consumer goods sector, while the capital goods sector also witnessed positive movement as it moved from earlier contraction to expansion.

It should also be noted that the month of January also witnessed India's new export orders jump to the highest since November 2018, with manufacturers registering higher sales to clients in Asia, Europe and North America.