Manufacturing growth at 8-year high

India’s manufacturing activity saw a significant rebound in January 2020, growing at its fastest pace in nearly eight years with a sharp surge in new business and production. This has also precipitated employment growth at the quickest rate in nearly seven-and-a-half years. The IHS Markit India Manufacturing Purchasing Managers’ Index jumped to 55.3 in January from 52.7 in December, the highest reading since February 2012. “The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business,” said Pollyanna De Lima, principal economist at IHS Markit and author of the report. Consumer goods saw the strongest growth, even as intermediate goods and capital goods moved back into expansion mode.