India’s manufacturing PMI rises to 14 month high in Feb owing to increase in sales, output and employment

New Delhi, Mar 1 (KNN) India’s manufacturing sector performance has improved in February and touched a 14-month high driven by various factors including acceleration in sales, output and employment, according to monthly survey report.

The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to a 14 month high of 54.3 in February, from 53.9 in January, amid a robust improvement in business conditions.

According to the survey, the February data reflected sturdy improvement in business conditions since December 2017, sharpest rise in factory orders for 28 months and underpins faster increases in production and employment.

This is for the 19^th consecutive month that the manufacturing PMI remained above the 50-point mark. A PMI score above 50 represents expansion, while a score below denotes contraction.

"The Indian manufacturing sector made further progress midway through the final quarter of FY18, building on the accelerated upturn noted in January," said Pollyanna De Lima, Principal Economist at IHS Markit and author of the report.

Lima further noted that the upturn in employment was one of the best seen for six-and-a-half years, as goods producers sought to expand output capacities to meet strengthening demand from both domestic and external sources.