SMEs: There is great relief news for the Modi government on the economy front. The manufacturing activity in October was the highest in the entire decade. Even at a 13-year high of 58.9. This is a sign of improving demand. The manufacturing activity has received a boost in demand. Explain that during the Corona crisis, the demand was badly affected, which had a profound effect on the country’s economy. At present, there is a better expectation from PMI data.
According to the IHS Markit Manufacturing PMI (IHS Markit PMI) survey released on Monday, the manufacturing PMI index stood at 58.9 in October. This is its highest level since October 2007. At the same time, it was 56.8 points in September 2020. This is the third consecutive month when manufacturing PMI has seen steady growth. Due to this, there is also a boom in production and job activity. The expansion of activities of PMI above 50 points, while staying below 50 points indicates a declining trend.
Boom in new orders
Economist Associate Director of IHS Markit Paulina de Lima says that new orders and outputs are steadily growing. Due to which Indian manufacturers are recovering from the effects of Covid-19, which had to face a lot of pressure in the early months of the year. This boom in sales will remain intact in the coming months.
Both output and new orders, which track overall demand, are showing the fastest in more than 12 years. At the same time, the demand for forel has also increased the most since December 2014. However, this is the 7th consecutive month that the companies have cut the staff strength.
What is PMI?
Explain that Purchasing Managers’ Index (PMI) is used to assess the state of the manufacturing and service sectors. It is prepared on the basis of the opinions of managers on different business aspects, in which thousands of managers are consulted about products, new orders, industry expectations and apprehensions and employment.