More Stories

Informist, Thursday, Aug 1, 2024

 

--India Jul manufacturing PMI 58.1 vs 58.3 in Jun 

 

NEW DELHI – India's manufacturing sector activity slowed down in July from the previous month as growth in new orders and output receded marginally, S&P Global said. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, eased to 58.1 in July from 58.3 in June.

 

The flash manufacturing PMI for July, released on Jun 24, was at 58.5. A reading above 50 denotes an expansion in activity, while a print below 50 indicates a contraction.

 

"India's headline manufacturing PMI showed a marginal slowdown in the pace of expansion in July, but with most components remaining at robust levels, the small drop is no cause for concern," said Pranjul Bhandari, chief India economist at HSBC, in the release. 

 

While overall new order in July rose less than the previous month, export orders rose at the fastest pace in over 13 years, S&P Global said.

 

Buoyant demand, albeit slower than last month, led to a rise in price pressure. Input costs increased at one of the fastest rates in nearly two years, which translated to the biggest rise in selling prices since October 2013, S&P Global said. Manufacturers reported higher input costs for coal, leather, packaging, paper, rubber and steel.

 

"The continuous increase in the output price index, driven by input and labour cost pressure, may signal further inflationary pressure in the economy," Bhandari noted. Higher raw materials costs along with a rise in labour costs and demand strength led to a rise in output charges.

 

Firms increased production volumes substantially in July even as the rate of growth eased from June, S&P Global said. 

 

Firms continued to hire extra staff in July, both on a permanent and short-term basis, S&P Global said. "The latest increase in employment was softer than in June, though one of the strongest in the survey history. Yet, while 7% of panellists noted job creation, 92% reported no change in headcounts," it said. 

 

The positive sentiment on the year-ahead outlook for production last month was similar to June. Growth is expected to be supported by marketing efforts and new client enquiries, S&P Global said.  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.