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Indian Manufacturing Sector Strengthens; PMI Reaches 52.2

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2018-11-16

Indian factory production showed improvement as September’s Purchasing Manager Index (PMI) rose to 52.2 percent from August’s 51.7 percent. This is the 14thconsecutive month of expansion. Index over 50 shows expansion while below 50 means contraction.


This index, also known as the Nikkei India Manufacturing Purchasing Managers’ Index,
compiled by IHS Markit, is based on the survey conducted among purchasing executives in over 400 companies belonging to eight broad categories: Basic Metals, Chemicals & Plastics, Electrical & Optical, Food & Drink, Mechanical Engineering, Textiles & Clothing, Timber & Paper and Transport.

The report noted improvement in growth during September along with firmer gains in new orders, output and employment. Sales from both domestic and foreign clients spiked, while manufacturers increased their buying and augmented stocks of purchases in anticipation of further growth.


On the price front, input costs grew at a stronger rate amid reports of higher prices for fuel and steel. Charges were subsequently increased at a slightly firmer pace. Manufacturers remain confident that output will increase over the coming year.

(Source: Fastener Association of India)

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