New Delhi, October 1
India’s manufacturing sector activity improved for the second straight month in September and touched an over eight-and-a-half-year high supported by accelerated increases in new orders and production, even as firms reduced staff numbers, a monthly survey said on Thursday.
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) increased from 52 in August to 56.8 in September — highest since January 2012.
“The Indian manufacturing industry continued to move in the right direction, with PMI data for September highlighting many positives. Due to loosened Covid restrictions, factories went full steam ahead for production, supported by a surge in new work,” said Pollyanna De Lima, Economics Associate Director at IHS Markit.
In April, the index had slipped into contraction mode, after remaining in the growth territory for 32 consecutive months. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. The upturn in total sales was supported by a renewed expansion in new export orders, the first since prior to the escalation of the Covid outbreak.
“Exports also bounced back, following six successive months of contraction, while inputs were purchased at a sharper rate and business confidence strengthened,” Lima said.
Despite strong growth of order book volumes, Indian goods producers signalled another reduction in payroll numbers. — PTI