Indian Factories Record Quickest Increase In Order Books For 13 Months

Indian factories started 2019 on solid footing, boosting production in line with the quickest increase in order books for 13 months. At the same time, additional inputs were purchased in January as companies sought to rebuild their inventories. Meanwhile, further jobs were created, while inflationary pressures were negligible in the context of historical data.

Rising from 53.2 in December to 53.9 in January, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) indicated a stronger improvement in the health of the goods producing sector. Moreover, the latest reading matched its long-run average. Faster increases in new orders, output and stocks of purchases contributed to the upward movement in the PMI.

Amid reports of successful advertising campaigns, favourable economic conditions and strengthening demand, sales growth picked up in January. The increase in factory orders was the strongest seen in 13 months. Subsequently, production volumes were boosted at the start of 2019.The rate of expansion was the sharpest since December 2017 and surpassed its long-run average.

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