Asia’s third-largest economy, India, accelerated its recovery in September thanks to stabilizing consumer demand and activity in the manufacturing sector, which returned to pre-crisis levels.

Five of the eight high-frequency indicators tracked by Bloomberg News made gains last month, while three others held their ground. The positive changes helped to boost investor confidence by one point after the indicator remained at the same level for two consecutive months.

The reading is based on the three-month weighted averages of eight indicators against the past thirty months of historical data. The indicators are Markit India Composite purchasing managers index (PMI), Output Price Index, Order Books Index, Citi Financial Index, government data on exports, industry and infrastructure sectors, and the Reserve Bank of India data on demand for loans.

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Accelerating factory activity in India was one of the main drivers of the uptick. According to IHS Markit, the India Manufacturing PMI jumped to 56.8 last month, marking the highest pace of growth in over eight years. Any reading above 50 suggests expansion, while falling below 50 indicates contraction.

While the key services sector, hit hard by the two-month long pandemic-induced lockdown, failed to return back to growth, it almost reached the 50-point threshold in September. The services PMI rose to 49.8 from 41.8 level seen in August. (RT)