Manufacturing on rise

Why is it in the news ?
  • The country’s manufacturing sector activity edged higher in January as companies continued to scale up production and employment.
  • The rise is driven by the fastest rise in factory orders since December 2017.
More about the Tribunal
  • The Nikkei India Manufacturing Purchasing Managers' Index increased from 53.2 in December to 53.9 in January, indicating stronger improvement in the health of the goods producing sector. 
  • This is the 18th consecutive month that the manufacturing PMI remained above the 50-point mark. 
  • In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. 
  • Besides, favourable economic conditions, strengthening demand and sales growth also picked up in January. 
  • According to experts the signs of easing inflationary pressures indicate that the Reserve Bank of India (RBI) is likely to adopt an accommodative monetary policy stance. 
PMI Index
    • PMI or a Purchasing Managers' Index (PMI) is an indicator of business activity -- both in the manufacturing and services sectors. 
    • This index is prepared on the basis of a survey which is conducted among purchasing executives in over 400 companies.
    • These companies are divided into eight broad categories:
1 Basic metals,
2 .Chemicals and plastics,
3. Electrical and optical,
4. Food and drink,
5. Mechanical engineering,
6. Textiles and clothing,
7. Timber and paper,
8 .Transport.
    • Index over 50 shows expansion, while below 50 mean contraction.
Source
The Hindu.



Posted by Jawwad Kazi on 2nd Feb 2019