Activity in the country’s manufacturing sector rose at its fastest pace in eight months in October on the back of new orders as demand improved and the economic recovery gathered strength.
At 55.9 in October, the IHS Markit India Manufacturing Purchasing Managers’ Index was in expansion territory for the fourth month in a row. Moreover, rising from 53.7 in September, the latest figure pointed to the strongest improvement in overall operating conditions since February.
Firms stepped up input purchasing amid stock-building efforts in anticipation of further improvements in demand, while business optimism hit a six-month high, the survey showed. The survey is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
Amid reports of improved market confidence, rising requirements among clients and successful marketing, new orders continued to expand in October. The upturn was sharp and the fastest in seven months. Similarly, factory output increased at a sharp pace that was the strongest since March, the survey showed.
The lifting of curbs and rapid vaccination has helped strengthen the economic recovery. “With companies gearing up for further improvements in demand by building up their stocks, it looks like manufacturing activity will continue to expand,” said Pollyanna De Lima, economics associate director at IHS Markit.