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India's factory output rises to 3-month high in May

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IANS Mumbai
Last Updated : Jun 03 2019 | 3:15 PM IST

Strengthening demand conditions accelerated the pace of India's manufacturing sector output in May, a key economic indicator showed on Monday.

As per the Nikkei India Manufacturing Purchasing Managers' Index (PMI), the composite indicator of manufacturing performance showed an index reading of 52.7 in May from 51.8 in April 2019.

An index reading of above 50 indicates an overall increase in economic activity, or growth, and below 50 an overall decrease.

Besides, the latest figure pointed to the strongest improvement in the health of the sector for three months. Moreover, the current growth sequence was stretched to 22 months.

According to Pollyanna De Lima, Principal Economist at IHS Markit and author of the report, "A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfil strengthening demand."

--IANS

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First Published: Jun 03 2019 | 3:06 PM IST

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