3.12.18

Manufacturing PMI jumps to 11-month high: November 2018

India's manufacturing sector activity improved in November and touched an 11-month high as new order flows encouraged companies to lift production amid strong demand conditions.

The Nikkei India Manufacturing Purchasing Managers' Index strengthened from 53.1 in October to 54.0 in November, signalling the strongest improvement in the health of the sector in almost one year.

This is the 16th consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Manufacturers increased production at the second-quickest pace since October 2016, buoyed by stronger demand conditions and greater sales.

The expansion in total new orders was supported by greater sales to international markets as producers reportedly received bulk orders from clients in key export destinations.

On the employment front, goods producers created jobs in November. Though the increase in employment softened slightly since October, but was among the fastest seen in six years, the survey noted.

Going ahead, business sentiment improved from October's 20-month low, with Indian manufacturers forecasting better market conditions in the coming 12 months.

It was further noted that the relatively weak demand environment seen earlier in the year showed signs of abating, as clients are placing more work orders regardless of rise in output prices.

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