Output growth at three-month high in IndiaStaff Writer | July 6, 2016
Supported by a stronger increase in new business inflows, Indian manufacturers raised production at a faster rate during June.
Indian economy Nikkei India Manufacturing PMI
At 51.7 in June, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) pointed to a further improvement in the health of the sector. Rising from 50.7 in May, the headline index was at a three month high.
The main contributing factors to the upward movement in the PMI were stronger rates of growth in new orders and output, both of which reached three-month highs in June. Incoming new work rose across the three broad areas of the manufacturing economy, as did production. The best-performing category was consumer goods.
Offsetting the decline seen in May, the first in 32 months, new export orders increased in June.
However, the rate of expansion was only slight and below the long-run series average. Two of the three monitored market groups recorded higher levels of new business from abroad, the exception being intermediate goods.
Boosted by sustained growth of order books, buying levels rose in June. Despite being slight, the rate of expansion was the quickest in the current six-month sequence of increases. Purchasing activity grew in each of the three sub-sectors, led by consumer goods. ■