India has emerged as an exception, as the manufacturing activity is expanding at the fastest rate in 14 months, despite major emerging economies in the region recording a slump, reports Nikkei Asian Review.
The latest data comes from the Nikkei Purchasing Managers’ Index (PMI) survey of this month, that is conducted on a monthly basis. Of the 15 data sets analysed in the PMI for February, nine countries saw a drop compared to the previous month while only six grew, with manufacturing industry having a specifically widespread decline.
India has been a notable exception as the manufacturing PMI rose to 54.3 from January’s 53.9, its highest level since December 2017. A PMI reading below 50 indicates a slowdown in manufacturing activities, while over 50 points to expansion.
According to The Nikkei Asian Review report, the Indian manufacturing industry is mainly comprised of chemicals, machinery, metals, and textiles. The increasing growth in the manufacturing sector is attributed to Prime Minister Narendra Modi’s ‘Make in India’ initiative, which seeks to bring complete transformation of manufacturing sector in the country.
On the other hand, most other Asian nations recorded lower PMI numbers in February as they continued to get affected by the US-China trade tensions, apart from the getting affected by the global technology slump. The most hard hit by the manufacturing slowdown in Asia are countries like Japan and South Korea, which are mainly dependent on exports to China, who is, in turn, on a trade war with the US.