Manufacturing sector is witnessing green shoots! Growth up in October

Growth of the Indian manufacturing sector has improved in October compared to the last month, however, mining and electricity are still not doing well.

According to a monthly SBI Composite Index report, manufacturing activities have increased to 50.8 in October compared to 48.4 in September. This index is an indicator for manufacturing activities in India.

However, the yearly index for October recorded at 53.6 compared with index of 53.9 in September.

The positive trends in capital goods sector suggest the possible pick-up in economic momentum.

Moreover, sectors such as power, steel, green energy, hydrocarbon and telecom would witness a sharp credit demand in the coming quarters, as suggested by the report. At the same time, personal loan segment, especially housing and vehicle loan might witness an uptick.

The report further noted that about 7% growth in IIP is likely for September or October, or possibly both.

An index value of 42 to 46 means (moderate decline), 46 to 50 (low decline), 50 to 52 (low growth), 52 to 55 (moderate growth) and above 55 (high growth), it said.

The SBI Composite Index rivals the existing data point from Nikkei.

(Image: Indiatimes)