Expands at quickest pace as new business, production give a boost to employment.
India’s manufacturing activity expanded at its quickest pace in nearly eight years in January on sharp rises in new business and production that gave employment a boost, a private survey showed on Monday. Jobs grew at the quickest rate in close to seven-and-a-half years.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) jumped to 55.3 in January from 52.7 in December. It was the highest reading since February 2012 and above the 50 mark that separates growth from contraction for the 30th straight month.
“The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment 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 and author of the report. “Hiring activity improved in January, with firms increasing employment at the quickest rate in close to seven-and-a-half years.”
