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Informist, Monday, Sep 2, 2024

 

--India Aug manufacturing PMI 57.5 vs 58.1 in Jul 

 

NEW DELHI – India's manufacturing sector activity slowed down in August from the previous month due to weak business confidence on account of competitive pressures and inflation concerns, S&P Global said. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, eased to 57.5 in August from 58.1 in July.

 

The flash manufacturing PMI for August, released on Aug 22, was 57.9. A reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.

 

"The Indian manufacturing sector continued to expand in August, although the pace of expansion moderated slightly. New orders and output also mirrored the headline trend, with some panellists citing fierce competition as a reason for slowdown," Pranjul Bhandari, chief India economist at HSBC, was quoted as saying in the release. "Nevertheless, all three indicators remain well above their historical averages."

 

August was the second successive month when the manufacturing sector's expansion slowed down. In July, manufacturing activity moderated to 58.1 from 58.3 the previous month as growth in new orders and output receded.

 

However, fall in cost pressures supported the sector's expansion in August, S&P Global said. The rate of input price inflation softened to the lowest in five months for most raw materials, except leather, minerals, and rubber.

 

"Manufacturers increased their raw material buying activity in order to build safety stocks. In line with input costs, the pace of output price inflation also decelerated, but the deceleration was to a much smaller extent, thereby increasing margins for manufacturers," Bhandari said in the release.

 

New business rose sharply midway through Jul-Sep, but the pace of expansion eased to a seven-month low, S&P Global said. The rise was led by advertising, brand recognition and healthy demand trends, while competitive conditions dampened growth.

 

On the other hand, job creation softened midway through Jul-Sep as a few firms trimmed headcount. But the overall rate of employment growth was solid in the context of historical data, S&P Global said. 

 

"New export orders likewise increased at the weakest pace since the start of the 2024 calendar year. Yet, one-in-ten firms noted an improvement in international sales, which they associated with stronger demand from Asia, Africa, Europe and the US," S&P Global said.  End

 

Reported by Krity Ambey

Edited by Ashish Shirke

 

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