Manufacturing sector activity rebounded in January 2017 and registered positive growth after contracting in December due to demonetisation.
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose to 50.4 in January from 49.6 in December.
The main factors contributing to the above-50 PMI reading were growth of both new orders and output.
A reading above 50 on the index denotes expansion while that below the mark indicates contraction.
Improving confidence among firms bodes well for the outlook, with the expansion in manufacturing output likely to pick up pace in the coming months.