Indicating a sharp uptick in industrial activity, the Nikkei India Manufacturing Purchasing Managers’ Index TM (PMI) rose to a 22-month peak in October of 54.4. It stood at 52.1 in September.
“It was supported by stronger contributions from three of its five sub-components – new orders, output and stocks of purchases,” said Nikkei in a release on Tuesday, adding that output in October increased for the tenth straight month and at the quickest rate in nearly four years.
Reflecting the higher demand in the festival season, consumer goods producers outperformed their intermediate and investment goods counterparts, registering stronger rates of expansion for both output and new orders.
“October data provide positive news for India’s economy, as manufacturing output and new orders expanded at the fastest rates in 46 and 22 months respectively,” said Pollyana de Lima, adding that the sector looks to be building on the foundation of the implied pick-up in growth in the previous quarter.