Factory growth sped to six-month high in July

New Delhi, August 3 

In a smart recovery, the manufacturing sector grew at its fastest pace in six months in July on increased export order flows but hiring remained sluggish, a monthly survey showed today.

The data came a day before RBI's scheduled monetary policy review meeting, where the central bank is widely expected to keep its policy rates unchanged. However, some analysts including those at Moody's Analytics expect a rate cut as a sustained recovery is yet to be seen in manufacturing sector.

The Nikkei India Manufacturing PMI — a composite indicator of manufacturing sector performance — rose to 52.7 in July from 51.3 in June, logging a six-month high, indicating an improvement in business conditions. 

As per the survey, growth of new export business orders accelerated in July to reach its highest level in five months. —PTI