After a disappointing budget, some good news for the economy. A survey showed manufacturing activity has hit near eight-year highs on new orders.

The IHS Markit India Manufacturing PMI rose to 55.3 in January from 52.7 in December 2019 — the highest level in just under eight years because of a sharp rise in new business orders amid a rebound in demand conditions that led to a rise in production and hiring activity.

While a print above 50 denotes expansion, a score below that shows contraction. This is the 30th consecutive month that the manufacturing PMI has remained above the 50-point mark.

A note from IHS Markit said the rate of expansion in India’s manufacturing industry continued to gain strength in January as firms responded positively to a sharp improvement in demand. It added that the month saw growth of new business, output, exports, input buying and employment gather speed.

Further, business sentiments strengthened and there were softer rises in both input costs and output charges.

“Manufacturing sector growth in India continued to strengthen in January, with operating conditions improving at a pace not seen in close to eight years,” said Pollyanna de Lima, principal economist at IHS Markit.

Companies noted the strongest upturn in new business intakes for over five years.