Published: Wed, February 01, 2017
Markets | By Erika Turner

India manufacturing activity resumes expansion

India manufacturing activity resumes expansion

China's manufacturing sector has been buoyed by a government infrastructure building spree and a housing boom, which have fueled demand for building materials from cement to steel.

A PMI measures changes in activity levels across China's manufacturing sector from one month to the next.

The seasonally adjusted India Manufacturing Purchasing Managers' Index rose to 50.4 from 49.6 in December, survey figures released by IHS Markit and Nikkei showed Wednesday.

As per the IHS Markit report, the factors that contributed to the above 50 PMI mark were growth of both new orders and output. A score above 50 indicates expansion in the sector.

However, input prices continued to be concern, with the sub-index jumping by 9.5 points to 72.3, leading some manufacturers to question their ongoing viability amid surging energy costs, Ai Group said. Input prices rose at the sharpest rate in almost two years as a result.

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Indeed, economists at ANZ noted that growth in construction services seems be faltering, though at 61.1 the index remained above last year's average of around 60.

Zhao attributed the deceleration of production and new orders to the Lunar New Year holiday which slashed work days.

If the economy remains on solid footing, China's leaders are expected to turn their attention to containing financial risks this year, accepting slightly lower growth of around 6.5 percent compared with 6.7 percent in 2016.

Like the nation's manufacturing sector, other sectors of the economy continued to improve with the separate non-manufacturing PMI increasing to 54.6.

Policymakers are counting on growth in services to offset persistent weakness in exports that is dragging on the world's second-largest economy.

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