India's manufacturing sector activity, the S&P Global Purchasing Managers' Index, for the month of July came in at 57.7. This is in line with 57.8 reported in June. The manufacturing sector activity was at a 31-month high of 58.87 in May.
July's PMI is higher than the 50 key level, which indicates expansion in activity. Anything below 50 indicates contraction. The condition of the manufacturing sector has now strengthened in the past 25 months, according to S&P Global report.
The expansion in manufacturing activity last month was supported by rise demand, and thus new orders, broadly in line with the preceding month. S&P Global stated that the output has continuously seen a rise since July 2021. While the rise in July was substantial, it was the softest in three months.
The growth in new export business witnessed an increase in July and was fastest in eight months.
The purchasing activity remained higher at the start of the third quarter. The growth in July was only slightly softer than the 12-year peak hit in May. The stocks of purchases also increased sharply as companies expressed a desire to build inventories amid a buoyant demand environment.
To keep up with the demand, manufacturers were helped by a speeding up of deliveries from suppliers. Lead times shortened for the fifth straight month, albeit marginally.
The rate of input cost inflation accelerated to a nine-month high in July, but remained softer than the series average. The rate of inflation eased to a three-month low.
First Published: Aug 1, 2023 10:48 AM IST
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