Hope On Horizon: After Contracting For Five Months Straight, Manufacturing PMI Back In Expansion Zone

Hope On Horizon: After Contracting For Five Months Straight, Manufacturing PMI Back In Expansion ZoneAn industrial and transport equipment manufacturing factory.

The manufacturing purchasing managers index (PMI) reading for August has shown an expansion after contracting straight for five months starting March this year.

The index reached 52 in August, as compared to 46 in July. The manufacturing PMI had already reached a 2-year low in October 2019 at 50.6.

PMI is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month. A reading above 50 indicates expansion and a number below this points to contraction.

This was led by new domestic orders as businesses reopened after the easing of lockdown restrictions, Livemint quoted the IHS Markit survey report as saying.

On the other hand, the GST collection for August stood at Rs 86,449 crore, around one per cent less than that of July. Compared to the same month last year, the collection is down by 12 per cent.