Informist, Monday, Jul 1, 2024

--India Jun manufacturing PMI 58.3 vs 57.5 in May

NEW DELHI – India's manufacturing sector activity recovered lost ground in June, with the HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rising to 58.3 from 57.5 in May. Manufacturing activity increased last month because of buoyant demand conditions, which led to a rise in new orders and output, S&P Global said.

The flash manufacturing PMI for June, released on Jun 21, was at 58.5. A reading above 50 denotes an expansion in activity, while a print below 50 indicates a contraction.

"Manufacturing output increased at a sharp pace that was faster than in May, as underlying demand remained favourable and new business continued to flow in," S&P Global said. "Buoyant underlying demand, higher export volumes and successful advertising all fuelled growth, anecdotal evidence showed."

As new orders and manufacturing output rose, firms increased their hiring at the fastest pace in over 19 years, S&P Global said.

Staff expenses along with rising material and transportation costs led to an increase in operating expenses of firms, S&P Global said. Input price inflation eased in June from the previous month, though it was among the highest since August 2022. Firms surveyed by S&P Global said that input price inflation was led by aluminium, plastic and steel.

Firms passed on the rise in input prices to their clients at the greatest extent in over two years, S&P Global said. "A demand environment conducive to growth allowed manufacturers in India to share additional cost burdens with their clients."

Intermediate goods makers witnessed the fastest rise in input costs, while consumer goods producers led the increase in output prices, S&P Global said.

New export orders increased substantially in June, thanks to better demand from Asia, Australia, Brazil, Canada, Europe and the US, it said.

Manufacturing firms remained positive about the outlook on the sector, with nearly 29% of panellists expecting output growth over the coming year. "Firms forecast further improvements in demand and order book volumes in the year ahead, with advertising and greater client enquiries also underpinning optimism. The overall level of confidence receded to a three-month low, however," S&P Global said. End

Reported by Shubham Rana

Edited by Avishek Dutta

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