By Anant Vijay Kala

NEW DELHI--A gauge of manufacturing activity in India surged to a 22-month high in October, brightening the outlook for the South Asian economy.

The seasonally-adjusted India Manufacturing Purchasing Managers' Index rose to 54.4 from 52.1 in September, survey figures released by IHS Markit and Nikkei showed Tuesday. A figure above 50 indicates expansion while a reading below that signals contraction.

"October data provide positive news for India's economy, as manufacturing output and new orders expanded at the fastest rates in 46 and 22 months respectively," said Pollyanna De Lima, an economist at IHS Markit.

New work received by manufacturers increased markedly last month, although the rate of growthin business from overseas eased to a three-month low, Nikkei said.

The strong growth was driven by the consumer-goods sector, which outperformed intermediate and investment goods producers, it added.

The latest data will likely be seen as a sign of a stronger recovery in Asia's third-largest economy that has so far failed to show a convincing pick-up in growth momentum despite government efforts to stimulate investments and demand.

Write to Anant Vijay Kala at anant.kala@wsj.com

(END) Dow Jones Newswires

November 01, 2016 01:37 ET (05:37 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.