Manufacturing PMI hits 8-year high of 55.3 in Jan on demand revival

The manufacturing sector, which is blamed for dragging down the economic growth for the current fiscal year, rose to an eight-year high in January, according to the widely-tracked purchasing managers’ index (PMI) survey.   

The IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, its highest level in just under eight years. According to PMI parlance, a reading above 50 represents growth and the one below it denotes contraction. 

The growth was driven by a sharp rise in new business orders amid a rebound in demand conditions. This led to a rise in production and hiring activities. 

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