Export demand pushes manufacturing production higher: PMI

Posted by Daily Shipping Times on 06-03-2017        Tweet

NEW DELHI: India's manufacturing production increased last month as a rebound in export demand contributed to a stronger expansion of total new orders, a key macro-economic data showed recently

The Nikkei India Manufacturing Purchasing Managers' Index (PMI) -- a composite indicator of manufacturing performance -- rose to 50.7 in February from 50.4 reported in January.

An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.

However, February's index reading was much weaker than the long-run series average of 54.2, largely reflecting below-trend rates of growth for output and new businesses.

"Indian manufacturers benefited from recovering demand and raised production volumes in response to another expansion in inflows of new work," said Pollyanna De Lima, Economist at IHS Markit.

The PMI report showed that an increased new order intakes contributed to a further rise in outstanding business.