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Anand Rathi: India’s Manufacturing PMI In The Growth Zone 

Anand Rathi: India’s Manufacturing PMI In The Growth Zone

A worker wearing a protective mask operates a machine while producing adhesive sealing tapes at the Ajit Industries Pvt. factory in Sonipat district, Haryana, India. (Photographer: Prashanth Vishwanathan/Bloomberg)
A worker wearing a protective mask operates a machine while producing adhesive sealing tapes at the Ajit Industries Pvt. factory in Sonipat district, Haryana, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Manufacturing Purchasing Managers Index (IHS Markit, seasonally adjusted) for India rose from 46 in July 2020 to 52 in August 2020. This ends four successive months of a below-50 PMI (manufacturing) score (during April-July 2020).

Globally, manufacturing PMI indices improved for 16 out of 25 countries in August 2020 (versus July 2020). Also,16 countries recorded PMI readings of 50 or above in August 2020 versus 13 in July 2020.

Among all the peers, India’s manufacturing PMI improved the most in August 2020.

Several Asian economies including India, Indonesia, Thailand and South Korea recorded improvements in August 2020 versus July 2020, while it was the opposite for Philippines and Malaysia.

The turn around in manufacturing PMI in August 2020 for India comes as a relief after the GDP data release yesterday showed a 39% contraction in manufacturing activities during Q1 FY21.

Click on the attachment to read the full report:

Anand Rathi Manufacturing Sector Update.pdf

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