Manufacturing growth peaks at eight-year high in January: good indicator for economy

New delhi date. February 3, 2020, Monday

Manufacturing growth increased in January. Manufacturing growth reached eight-year highs in January. Economists have characterized this growth rate as a good sign for the time to come. Monthly production rose for the first time since 2012.

Manufacturing sector activity in the country was upbeat in January. Private surveys claimed that the sector's employment rate had also increased. Production capacity increased as exports increased. Increased production capacity also created job opportunities.

A survey by the London-based information provider company IHS Market Manufacturing Purchasing Managers Index showed that the country's output increased in January-2020. The manufacturing sector received 55.3 points in this survey. There were 52.7 points in December. This growth was the highest since 2012.

The survey claimed that the sector's employment rate was also the highest in seven and a half years. Production increased as exports and new orders increased and production created more employment. Experts called it a good sign for the country's economy. If production capacity increases at this pace, then the sluggishness in the economy may go away in a few months.

Due to the increase in the sale of the products, the laborers in many factories in the country got the job. From July to September last year, the growth rate reached a six-year low. The report said that both the input cost and the output price showed slower growth, which is also a relief to the country's economy.

If the manufacturing growth points in the survey are 55, that is a good sign. If 50 points, it is considered medium and the position of Rabatamjub is maintained. Pressure on the country increases if it goes below 50. Demand for products in foreign markets is the main reason behind the increase in production. The export order for the first time since November-2018 was up.