IHS Markit Manufacturing PMI - Acuité Ratings & Research

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on the IHS Markit Manufacturing PMI released today:

"While the Indian economy has been on a gradual recovery path since Q1FY21, IHS Markit Manufacturing PMI for Oct 2020 provides some hope that the speed of such recovery is set to accelerate over the current quarter. The PMI moved up to 58.9 as against 56.8 in Sept and is reportedly the highest reading in over a decade. With the steady unlocking of the economic activities and importantly, the consistent decline in the fresh Covid cases and the fatalities thereof, the supply constraints appear to be easing out and also providing confidence to the manufacturers to build fresh inventories. This has the potential to deliver a positive growth in IIP and possibly stop the contraction in GDP from Q3 itself. The key to the sustainability of such improved demand sentiment would be however, the retail sales momentum during the current festive season."

Source : Equity Bulls

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