India's July Manufacturing PMI Steady At 57.7
India's manufacturing activity maintained its growth momentum as order growth remained elevated in July amid ongoing buoyant demand, according to a private survey.
The India Manufacturing Purchasing Managers' Index came in at 57.7 in July compared to 57.8 in June, according to IHS Markit. A print above 50 means expansion, while those below 50 indicate contraction.
Business conditions have now strengthened in each of the past 25 months, the release said. Reports of demand improvements were widespread across the latest survey and resulted in another marked expansion of new orders in the sector.
"The Indian manufacturing sector showed little sign of losing growth momentum in July as production lines continued to motor on the back of strong new order growth," said Andrew Harker, economics director at S&P Global Market Intelligence.
All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world.Andrew Harker, Economics Director, S&P Global Market Intelligence
New export business growth picked up to the fastest since last November. Respondents in the survey noted increases in new orders from customers in the U.S. and neighbouring countries such as Bangladesh and Nepal.
Firms responded to greater workloads by taking on extra staff. The solid pace of job creation was broadly in line with that seen in May and June. This expansion in capacity was not sufficient to prevent a further build-up in backlogs of work, however, given the strength of the rise in new orders.
The rate of input cost inflation accelerated to a nine-month high in July but remained softer than the series average. Where input prices increased, panellists reported higher costs for raw materials, in particular cotton. These higher prices for raw materials, plus rising labour costs, led firms to increase their selling prices. The rate of inflation was solid but eased to a three-month low, the release said.
The survey showed that demand is expected to remain elevated in the coming year, supporting projections for growth in production. However, confidence was slightly lower than that seen in June but remained above the series average. Around 32% of respondents predicted a rise in output, with just 2% being pessimistic.
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