India’s manufacturing PMI softens to 57.8 in June, CFO News, ETCFO

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<p> India's manufacturing PMI softens to 57.8 in June</p>
India’s manufacturing PMI softens to 57.8 in June

India’s manufacturing industry expanded at the second-fastest rate this year in June, albeit at a slightly slower pace than in May, supported by robust demand despite higher inflationary pressures, a private survey showed on Monday.

The S&P Global India Manufacturing Purchasing Managers’ Index softens to 57.8 in June from 58.7 in May . The manufacturing PMI has now spent 24 consecutive months above the key level of 50 that separates expansion and contraction in activity.

“June’s PMI results again showed robust demand for Indian-made products, both in the domestic and international markets,” Pollyanna De Lima, economics associate director at S&P Global Market Intelligence said. “Positive client interest continued to support the manufacturing industry, driving growth of output, employment, quantities of purchases and input stocks.”

Companies ramped up production to meet the rising sales in June. The expansion in output was sharp and among the fastest over the past year-and-a-half, the release said.

New orders and output rose sharply despite the sub-indexes easing moderately from May, driven by both domestic and international demand. Foreign demand grew for the 15th straight month.

Strong underlying demand also stoked business confidence and optimism around future business activity rose to its highest this year.

Demand strength, new client enquiries and marketing efforts underpinned optimistic forecasts towards growth, the release showed.

Higher prices for labour and some raw materials led to increased input costs in June but the rate of inflation was only minutely higher from May and below the long-run average.

“Presented with buoyant demand, manufacturers seized the opportunity to adjust their pricing strategies. The latest increase in output charges reflected firms’ ability to pass on higher cost burdens to customers while maintaining a competitive edge,” De Lima said.

  • Published On Jul 3, 2023 at 11:39 AM IST

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