India Manufacturing Growth At 6-Month High … RTT
India Manufacturing Growth At 6-Month High
India’s manufacturing activity expanded at the fastest pace in six months in June, driven by strong growth in output and new orders, survey data from IHS Markit showed Monday.
The Nikkei manufacturing Purchasing Managers’ Index, or PMI, climbed to 53.1 in June from 51.2 in May. However, any reading above 50 indicates expansion in the sector.
Both output and new orders rose at the fastest rates in this year so far. Panelists linked greater output to favorable demand conditions.
Consequently, firms raised their staffing levels in June and the rate of job creation accelerated to a 6-month high.
On the price front, input price inflation intensified to the highest level since July 2014, led by higher steel and fuel prices.
Despite strengthening demand conditions, business sentiment was at the weakest level seen since last October.
“The dip in optimism partly reflected concerns of a potential market slowdown in the year ahead,” Aashna Dodhia, Economist at IHS Markit, said.
“Indeed, some of the key challenges to the 12-month outlook include tighter domestic monetary policy and persistently high inflation.”
by RTTNews Staff Writer