Due to the encouragement of companies to increase production from new orders, activities in the manufacturing sector of the country were witnessed in November and reached the highest level of 11 months. A monthly survey found this on Monday.
‘NICCI India Manufacturing Purchasing Manager Index’ (PMI Index) reached 54.0 in November, the monthly survey conducted among the procurement managers of manufacturing companies. It was 53.1 in October. Index above 50 indicates expansion in business activities whereas index below 50 indicates contraction.
This is the 16th consecutive month when there has been an increase in the activities of manufacturing sector and the manufacturing PMI index has been above the index 50. Due to robust demand and better sales, the pace of manufacturing activity in November 2018 has been the second highest since October 2016.
The author of the Survey Report and Principal Economist Poliana De Lima, in the IHS Markets, said, “Indian manufacturing sector has been continuously improving since August, and it reached the highest level of 11 months in November.” He said that new Extensions in orders received support from better sales in international markets.
On the employment front, manufacturers of goods created jobs in November in the month of November. Although the growth in employment remained soft compared to October, despite this it remained one of the fastest six years. The survey said that business sentiment has also improved from the lower level of 20 months of October. Indian manufacturers estimate that market conditions will remain better for the next 12 months.