India’s manufacturing improves as input cost inflation eases

New Delhi, September 1

Advertisement

India’s manufacturing sector activity in August witnessed the second-strongest improvement in operating conditions in nine months, boosted by strengthening demand conditions and softening inflation concerns, a monthly survey said on Thursday.

Production volumes were also supported by a pick-up in exports and upbeat projections for the year-ahead outlook. Firms were at their most optimistic for six years.

14th straight month of growth

• Production volumes were also supported by a pick-up in exports and upbeat projections for the year-ahead outlook
• The S&P Global India Manufacturing Purchasing Managers’ Index was little changed from July’s reading of 56.4, posting 56.2 in August

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was little changed from July’s reading of 56.4, posting 56.2 in August.

The August PMI data pointed to an improvement in overall operating conditions for the 14th straight month. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“Indian manufacturers continued to benefit from the absence of Covid restrictions, with rates of growth for both output and new orders picking up yet again to the strongest since last November,” Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said.