New Delhi: The HSBC India Manufacturing Purchasing Managers’ Index (PMI) has surged to 57.5 in October. It was touched eight-month low of 56.5 in September. The reading above 50 means expansion while a score below 50 denotes contraction.
‘India’s headline manufacturing PMI picked up substantially in October as the economy’s operating conditions continue to broadly improve. Rapidly expanding new orders and international sales reflect strong demand growth for India’s manufacturing sector,’ Pranjul Bhandari, Chief India Economist at HSBC, said.
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The PMI is a weighted average of the five indices, namely New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%). The index is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
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