Indian manufacturing activity surged to eight-month high in the month of July, with marked gains in growth of new business and output. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose to 56.4 in July from 53.9 in June. The upturn was broad-based by sub-sector, and led by investment goods.
The report further noted that aggregate new order intakes rose substantially in July, recovering the growth momentum lost in June. The latest increase was in fact the most pronounced since last November, with quicker expansions recorded in all three broad areas of the manufacturing industry. Although international markets contributed to the latest upturn in total order books, there was a noticeably slowdown in external sales. New export orders rose at a moderate pace that was the weakest in the current four-month period of growth.
On the price front, goods producers registered a softer increase in their expenses during July. Chemicals, electronic components, metals, textiles and transportation fees were reportedly up on the month. Similar to input costs, there was a softer upturn in factory gate charges during July, one that was the slowest in four months. Inflation rates, for both input prices and output charges, were most acute in the capital goods segment. The weakest rises were noted in the intermediate goods sub-sector.
