Manufacturing activity picks up pace, improved demand due to strong demand and lower inflation concerns
Highlights
- Manufacturing Purchasing Managers’ Index (PMI) rose to 56.2 in August
- A number above 50 in PMI means expansion
- The pick-up in exports and positive projections for the year ahead also supported
Manufacturing Activity: India’s manufacturing activity witnessed a strong recovery in the month of August on firming demand and easing inflation concerns. This information has been received from a monthly survey on Thursday. The survey said production growth was also supported by a pick-up in exports and positive projections for the coming year.
PMI rose to 56.2 in August
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose to 56.2 in August. It was 56.4 in July. The PMI data for August indicated improvement in overall operating conditions for the 14th consecutive month. In PMI, a number above 50 indicates expansion, while a number below 50 indicates a decline.
Benefits of lifting Covid-19 restrictions
Poliana de Lima, economic joint director at S&P Global Market Intelligence, said Indian manufacturers have benefited from the lifting of the COVID-19 restrictions. Growth in both production and new orders is the strongest since last November. The latest results also indicate that inflation concerns have eased somewhat recently as business sentiment, which was at a 27-month low in June, has now strengthened. The positive sentiment is at its highest level in six years. The forecast for strong sales, fresh inquiries and marketing efforts have boosted confidence in August, the survey said.
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