India’s manufacturing activity recorded a slight drop to 58.1 in July, as compared to 58.3 in June, however, it still indicated a substantial improvement in the health of the sector, data released by S&P Global on Thursday showed. The latest reading was above the series long-run average and one of the highest seen in recent years.
The manufacturing sector continued to post impressive growth in July, despite slightly softer increases in new orders and output. The HSBC report stated that the key positive developments seen in the latest results included one of the fastest expansions in international sales for over 13 years and another robust round of job creation.
That said, buoyant demand also exerted pressure on prices. Input costs rose at one of the quickest rates in nearly two years, which contributed to the steepest increase in selling prices since October 2013.
Pranjul Bhandari, Chief India Economist, HSBC, said, “India’s headline manufacturing PMI showed a marginal slowdown in the pace of expansion in July, but with most components remaining at robust levels, the small drop is no cause for concern. New export orders remain a bright spot, rising by 1pt to the second-highest level since early-2011. The continuous increase in the output price index, driven by input and labour cost pressure, may signal further inflationary pressure in the economy.”
From: financialexpress
Financial News
