India's manufacturing sector activity eases in June, but output remained in growth territory: PMI - Times of India
PMI) dropped from 52.0 in May to 50.8 in June. Despite the decrease, the PMI remained above the threshold of 50, indicating expansion in the manufacturing sector. The survey highlighted a significant rise in new work orders, driven by strong demand. This indicates positive growth conditions for the Indian manufacturing industry.
Pulled down by a dip from 58.7 to 57.8 in June, the index indicates a notable enhancement in operational circumstances, as per the study. Furthermore, the robust demand also exerted a beneficial influence on various other aspects such as sales, manufacturing, inventory accumulation, and job opportunities.
Indicated a betterment in overall operating conditions for the 24th consecutive month. In the language of PMI, a reading above 50 signifies growth whereas a figure below 50 suggests decline.
The June PMI data once again demonstrated strong demand for goods produced in India, both domestically and internationally. Pollyanna De Lima, the Economics Associate Director at S&P Global Market Intelligence, stated that the manufacturing industry experienced growth in output, employment, purchases, and input stocks, thanks to continued positive interest from clients. Optimistic forecasts for growth were supported by the strength of demand, new client inquiries, and marketing initiatives. The survey also revealed that business confidence reached its highest point in six months.
In June, goods producers sought to increase their workforce to expand their capacities. Employment went up at a moderate pace, similar to May. These producers also purchased additional inputs, with a substantial increase that was the second-highest in over 12 years. This was driven by positive demand trends and the need for higher output. The high level of input buying shows the optimism and proactive approach of manufacturers. They are taking advantage of favorable market conditions and acquiring resources to support production growth, according to Lima. On the pricing front, inflation for goods increased to the highest level in 13 months. This is due to positive demand dynamics and higher labor costs. Manufacturers have adjusted their pricing strategies to take advantage of strong demand. The increase in output charges shows that firms are able to pass on higher costs to customers while remaining competitive, Lima stated. The S&P Global India Manufacturing PMI gathers data from around 400 manufacturers through questionnaires sent to purchasing managers. The data has been collected since March 2005 and includes a stratification by sector and company workforce size based on contributions to GDP.
