Factory activity picks up faster in September

NEW DELHI: Tighter demand conditions and a relaxation of Covid-19 restrictions helped activity in the country’s factory sector maintain its growth momentum and added business confidence in the months to come, a poll on Friday found.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose from 52.3 in August to 53.7 in September, showing a greater expansion in terms and conditions across the sector. For the second quarter of fiscal 2021-22, the PMI averaged 53.8, a significant improvement from 51.5 in the opening quarter.
As sales increased, companies increased their production and bought additional supplies. International sales also grew faster and the business climate improved, according to the survey.
“Indian manufacturers increased production more sharply in September as they adjusted to improving demand and replenishing stocks. There has been a significant increase in new work intake, with some contribution from international markets, ”said Pollyanna De Lima, deputy director of economics at IHS Markit.
A number of economic indicators have pointed to a robust recovery in recent months after restrictions were lifted following the easing of Covid-19 cases and the surge in vaccinations across the country. Economists expect double-digit macroeconomic growth for the current fiscal year ending in March and closer to the Reserve Bank of India (RBI) forecast of 9.5%.