Mumbai Jan 2 (IANS) India s manufacturing sector s activity expanded exponentially in December 2017 due to accelerated increase in output and new orders key macro-economic data showed on Tuesday.
Consequently the Nikkei India Manufacturing Purchasing Managers Index (PMI) a composite indicator of manufacturing performance increased to 54.7 in December 2017 from 52.6 reported for November.
An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.
According to the PMI the manufacturing sector ended 2017 on a positive note with "operating conditions improving at the strongest rate in five years".
As per the PMI data the overall upturn was supported by the sharpest increase in output and new orders since December 2012 and October 2016 respectively.
Commenting on the PMI data Aashna Dodhia Economist at IHS Markit and the author of the report said: "Strong business performance was underpinned by the fastest expansions in output and new orders since December 2012 and October 2016 respectively.
"Anecdotal evidence pointed to stronger market demand from home and international markets.
"However the sector continues to face some turbulence as delayed customer payments contributed to greater volumes of outstanding work. On the price front."
"July s Goods and Services Tax (GST) continued to lead to greater raw material costs with input cost inflation accelerating to the sharpest since April " Dodhia said.
--IANS
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