India's manufacturing sector ends 2020 on brighter note; Dec PMI up at 56.4

India’s factory sector ended a rough 2020 on a stronger note as manufacturers boosted production to meet rising demand, a private survey showed on Monday, although the employment situation worsened as firms continued to reduce headcounts.

Manufacturing has been one of the main engines driving a recovery in Asia’s third-largest economy after a coronavirus-induced slump early in the year. Business activity is slowly improving after contracting at an annual pace of 23.9% and 7.5% respectively in the April-June and July-September quarters.

The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, rose slightly to 56.4 in December from November’s 56.3,