Manufacturing activities in India gain momentum in August
New orders and output increase at quickest rates in nearly three years
Manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rates in nearly three years, according to a survey released on Friday.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose to 58.6 in August from 57.7 in July.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said 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 to provide a strong contribution to second quarter (fiscal) economic growth," De Lima said.
It said the PMI showed a robust improvement in manufacturing sector conditions across India, as new orders and output increased at the quickest rates in nearly three years during 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 noted.
On the price front, it said cost inflationary pressures accelerated but there was a slower uptick in selling charges.
In PMI parlance, a print above 50 means expansion while a score below 50 indicates contraction.
The PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. PTI RAM SHW
