The seasonally adjusted HSBC india Manufacturing Purchasing Managers' Index (PMI) rose to 59.1 in July from 58.4 in June. This marks the strongest improvement in the sector since march 2024.
India's Manufacturing PMI
The good news that india was waiting for took a long time, about 16 months, to arrive. But, as soon as august started, good news came on the economic front. Despite global uncertainties, India's manufacturing sector has seen significant growth in July. For the second consecutive month, the PMI index remained above 58. This figure was 58.4 in June, which increased to 59.1 in July - this is the highest level in the last 16 months
Manufacturing sector booming
The seasonally adjusted HSBC india Manufacturing Purchasing Managers' Index (PMI) rose to 59.1 in July from 58.4 in June. This indicates the strongest improvement in the sector since march 2024. A PMI index above 50 indicates expansion in production activity, while a figure below 50 indicates contraction.
Key points in the HSBC report
HSBC Chief indian Economist Pranjul Bhandari said that the manufacturing sector grew at 59.1 in July, which is higher than 58.4 in June. This growth was possible due to a strong increase in new orders and production.
Sales and production at record levels
According to the survey, total sales grew at the fastest pace in nearly 5 years. As a result, manufacturing growth reached a 15-month high. The survey also revealed that indian manufacturers are confident of increasing production in the next 12 months. However, the overall positive sentiment has fallen to its lowest level in the last three years.
Pressure on costs and prices
According to the survey, the cost of raw materials increased sharply in July. The prices of items such as aluminum, leather, rubber, and steel increased, further increasing the cost pressure. Companies have also increased the prices of their products due to high demand. The SBC india Manufacturing PMI is prepared by S&P Global based on the answers to questions sent to about 400 manufacturing companies.
click and follow Indiaherald WhatsApp channel