Indian manufacturing employment rose in January as firms adjusted capacities due to marked growth of new work. Jobs increased for the tenth straight month, albeit only slightly.

While there were reports among panellists of higher prices paid for paper, textiles, steel and synthetic rubber, firms noted lower charges for aluminium, copper, oil and plastic. Subsequently, overall cost burdens rose only modestly and at a rate that was muted by historical standards. Similarly, a slight increase in factory gate charges was registered.

Meanwhile, there was evidence of mild pressure on manufacturers' operating capacities as backlogs continued to increase slightly. At suppliers, there was no change in average performance compared to December.

The level of business sentiment in India's manufacturing industry improved to a five-month high in January. Underpinning optimism were forecasts of greater sales, favourable economic conditions and planned investment in marketing.

■ Marked and accelerated upturn in production

■ Fastest rise in factory orders since December 2017

■ Input buying growth picks up.

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Source: Nikkei inc. & IHS Markit