RTTNews | Nov 2, 2020 03:42AM EST

03:41 Monday, November 2, 2020 (RTTNews.com) - India's manufacturing activity improved sharply in October, survey results from IHS Markit showed on Monday.

The headline IHS Markit manufacturing Purchasing Managers' Index, or PMI, rose to 58.9 in October from 56.8 in September. Economists had expected a fall of 55.4. Any reading above 50 indicates expansion in the sector.

Sales increased at the strongest pace since mid-2008 in October and new export orders rose at the quickest pace in nearly six-years.

Firms increased the production at the strongest pace recorded since late-2007 and led to an increase in input buying.

Employment fell for the seventh month in a row in October, albeit at the weakest sequence. Backlogs of work rose at the slowest pace in the current six-month period.

Suppliers' delivery time lengthened for the seven months in October.

Input cost increased at a quicker pace in October, though the rate of inflation remained modest by historical standards. Output charges rose, but the rate of charge inflation was negligible.

The confidence toward the 12-month outlook for production increased as firms hoped for an end of Covid-19 cases and reopening of sectors. The level of confidence was the highest in 50 months.

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