India’s manufacturing sector witnessed a slight moderation in activities during June compared to the 31-month high in May, as revealed by a monthly survey on Monday. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI), which is subject to periodic adjustments, declined from 58.7 in May to 57.8 in June. However, manufacturing output remained in the growth domain, driven by a significant expansion of new work orders in response to favorable demand conditions.
The survey highlights that despite the decline, there has been a noteworthy improvement in working conditions. Sales, production, stock building, and employment were all positively influenced by the strength of demand.
The June PMI data signifies the 24th consecutive month of overall improvement in working conditions. In PMI terms, a reading above 50 represents expansion, while a reading below 50 indicates contraction.
“June’s PMI results continue to demonstrate robust demand for Indian-made products in both domestic and international markets. Strong client interest has been a driving force for growth in output, employment, quantities of purchases, and input stocks,” stated Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
Demand strength, new client inquiries, and promotional efforts have contributed to optimistic growth prospects. According to the survey, the general level of business confidence reached a six-month high.
In terms of employment, manufacturers sought to expand their workforce by hiring additional employees in June. Good producers increased their input purchases, maintaining a moderate rate of employment growth similar to that of May. The substantial increase marked the second strongest in the past 12 years, driven by positive demand trends and rising output needs.
“The surge in input buying underscores the optimism and proactive stance of manufacturers as they seek to capitalize on favorable market conditions and obtain resources to support production growth,” added Lima.
Positive demand dynamics and rising labor costs have contributed to a 13-month high in price inflation.
“With buoyant demand, manufacturers have taken the opportunity to adjust their pricing strategies. The recent increase in output charges reflects firms’ ability to pass on higher cost burdens to customers while maintaining a competitive edge,” noted Lima.
S&P Global collects the S&P India Manufacturing PMI by distributing questionnaires to purchasing managers in a panel of approximately 400 manufacturers. The panel is defined based on detailed sector and company labor workforce size in relation to GDP contributions.
Also Read | Sensex hits all-time high at 65,000; Nifty trades at 19,000
Also Read | Tesla sales jump 83% from a year ago as tax credits and broader adoption drive sales
Latest Business News
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
