Manufacturing activity growth touches 4-month high in July

Manufacturing activity in India rose to 51.8 in July, up from 51.7 in June, as according by Manufacturing PMI, the highest since April, Market Economics said. 

Manufacturing activity was boosted by a growth in production and new orders for factories, it said. New orders and output both touched four-month highs in July.

A reading above 50 indicates expansion while a reading below 50 indicates contraction. 

Along with new orders, the output cost prices were raised the most in three months, while input cost inflation went down, boosting activity. 

While some companies added to their workforce, the overall job creation in the sector was still negligible. 

TradingEconomics.com

Commenting on the manufacturing activity in the country, Markit Economics Economist and the author of the report said, 

“India’s manufacturing economy is reviving at the beginning of the second half of 2016 after the slowdown seen in the April-June quarter, as growth of both production and new orders continues to strengthen in July. Although output expanded at the fastest rate since March and backlog accumulation intensified, businesses refrained from creating jobs. The ongoing muted trend for employment indicates that companies remain somewhat uncertain regarding the sustainability of the upturn.

“The consumer goods sub-sector kept its place as the prime driver of the overall upturn. Although demand for plant and machinery improved, investment goods output dropped. Separately, the depreciation of the rupee supported Indian exporters as survey data pointed to the quickest rise in new business from abroad since January," she said.