India’s manufacturing activity rose to 58.3 in June, recovering from a three-month low of 57.5 in May, indicating a sharper improvement in business conditions, data released by S&P Global on Monday showed. The PMI was comfortably above its long-run average.
Growth in the Indian manufacturing sector recovered some of the ground lost in May, with the headline PMI posting nearly five points above its long-run average. The June data showed that the buoyant demand conditions spurred the expansions in new orders, output and buying levels. This led to the fastest rate of hiring in more than 19 years despite inflationary pressures remaining elevated, the survey reported. Further, it stated that the cost pressures receded from May, but were nevertheless among the highest over the past two years. As a result, companies lifted selling prices to the greatest extent since May 2022.
Maitreyi Das, Global Economist at HSBC, said, “The Indian manufacturing sector ended the June quarter on a stronger footing. The headline manufacturing PMI rose by 0.8 percentage points to 58.3 in June, supported by increased new orders and output. Consequently, firms increased their hiring at the fastest pace in over 19 years. Input buying activity also rose during the month.
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“On the price front, input costs moderated slightly in June, but remained at elevated levels. Manufacturers were able to pass on higher costs to customers, as demand remained robust, resulting in improved margin. While the overall outlook for the manufacturing sector remains positive, the future output index receded to a three-month low, albeit it remains above the historical average,” Maitreyi Das added.
From: financialexpress
Financial News
