Indian Manufacturing Sector Shows Resilience With PMI At 58.3 In June

ENA Sectors 2024-07-01 16:30:41 New Delhi, Jul 1 (KNN) India's manufacturing sector demonstrated resilience in June, with the HSBC final India Manufacturing Purchasing Managers' Index (PMI) rising to 58.3 from May's three-month low of 57.5. The index, compiled by S&P Global, indicates a marked improvement in business conditions, despite falling slightly short of the preliminary estimate of 58.5. The June PMI, nearly five points above its long-run average, reflects a robust recovery in the manufacturing sector. Buoyant demand conditions fuelled expansions in new orders, output, and purchasing levels. Notably, firms increased employment at the fastest rate recorded in over 19 years of data collection. Maitreyi Das, Global Economist, HSBC, commented on the sector's performance, stating, The Indian manufacturing sector ended the June quarter on a stronger footing. The headline manufacturing PMI rose by 0.8 percentage points to 58.3 in June, supported by increased new orders and output. While input costs moderated slightly in June, they remained at elevated levels, with the rate of inflation among the highest since August 2022. Manufacturers were able to pass on higher costs to customers as demand remained robust, potentially improving margins. The consumer goods industry performed particularly well, with strong sales expansion reported across the manufacturing sector. Growth was further bolstered by higher export volumes and successful advertising campaigns. Export orders saw substantial increases, with improved demand noted from various global markets including Asia, Australia, Brazil, Canada, Europe, and the United States. Despite the overall positive outlook, the future output index receded to a three-month low, though it remains above the historical average. The rate of job creation was sharp and the most significant since data collection began in March 2005, driven by ongoing increases in new order intakes. The report also highlighted that intermediate goods makers marked the quickest increase in input costs, while consumer goods producers led the upturn in output charges. Selling prices were raised to the greatest extent in over two years. As the Indian manufacturing sector shows signs of resilience and growth, stakeholders will be closely monitoring future developments, particularly in light of global economic uncertainties and inflationary pressures. (KNN Bureau) 38426 https://knnindia.co.in/news/newsdetails/sectors/indian-manufacturing-sector-shows-resilience-with-pmi-at-583-in-june 2024-07-01 16:30:41 knnindia.co.in Indian Manufacturing Sector Shows Resilience With PMI At 58.3 In June