India's manufacturing sector activity, the S&P Global Purchasing Managers' Index, for the month of August came in at 58.6. This is in higher than 57.7 reported in July. The manufacturing sector activity was at 57.8 in June.
July's PMI is higher than the 50 key level, which indicates expansion in activity. Anything below 50 indicates contraction. The reading for August indicates the second-best improvement in the health of the sector for nearly three years, according to S&P Global report.
The expansion in manufacturing activity last month was supported by rise in new orders. S&P Global stated that the output increased at the quickest rates in nearly three years in August. The demand strength was pivotal to August's robust performance, fastest upturn in new orders since January 2021.
Competitive pricing and advertising were also cited as factors behind sales growth in the S&P report. Firms rebuilt their input stocks at the second strongest pace in 18-and-a-half years of data collection.
New export orders increase for the seventeenth month running halfway through the second fiscal quarter, but also to the greatest extent since November 2022. According to S&P, healthy demand environment and favourable market conditions encouraged Indian manufacturers to step up production.
Output increased for the twenty-sixth successive month. Manufacturers purchased additional raw materials and semi-finished items in August. Buying levels rose sharply at one of the fastest rates seen in over 12 years.
Also Read: India to achieve 6.5% GDP growth in FY24 and maintain fiscal deficit target of 5.9%, says CEA
First Published: Sept 1, 2023 10:51 AM IST
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