Manufacturing sector activity rose in December

Consequently, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI), a composite indicator of manufacturing performance, increased to 54.7 in December 2017 from 52.6 reported for November. An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease. 

According to the PMI, the manufacturing sector ended 2017 on a positive note, with “operating conditions improving at the strongest rate in five years.” As per PMI data, the overall upturn was supported by the sharpest increase in output and new orders since December 2012 and October 2016, respectively. 

Aashna Dodhia, Economist at IHS Markit and the author of the report, said: “Strong business performance was underpinned by the fastest expansions in output and new orders since Dec 2012 and October 2016, respectively. “Anecdotal evidence pointed to stronger market demand from home and international markets.