India manufacturing sector growth gains momentum in August
Sep 01, 2023
New Delhi [India], September 1 : India's manufacturing sector growth gained momentum in August with the Purchasing Managers Index (PMI) posting 58.6 as compared to 57.7 in July.
The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.
According to S&P Global's India Manufacturing Purchasing Managers' Index report, new orders in and manufacturing output increased at the quickest rates in nearly three years during the month of August.
“Firms geared up to handle rising demand by scaling up buying levels and rebuilding their input stocks at the second-strongest pace in 18-and-a-half years of data collection,” it said in its report.
On the price front, cost inflationary pressures accelerated but there was a slower uptick in selling charges, it noted.
"The PMI results for India painted a vibrant picture of the nation's manufacturing landscape in August. Robust and accelerated increases in new orders and production suggest that the sector looks set to provide a strong contribution to the second quarter (fiscal) economic growth,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
The near-record increases in buying levels and input stocks underscore methodical approaches of companies in ensuring that production lines are not interrupted, Pollyanna De Lima said, adding manufacturers also hired additional workers again in August.
"The presence of stronger cost inflationary pressures serves as a reminder of the challenges inherent in managing growth. Firms addressed rising input prices by lifting selling charges. However, the need to maintain competitiveness helped restrict charge inflation" saod the S&P report.
