India's Manufacturing Surge: Record High PMI and Export Boom in June
India's manufacturing sector reached a 14-month high PMI of 58.4 in June, propelled by robust output and new orders. This growth was fueled by strong export demand and led to an increase in employment and input purchases. Despite moderating input costs, selling prices rose, reflecting improved market conditions.
- Country:
- India
In June, India's manufacturing sector achieved its highest growth in 14 months, as the Purchasing Managers' Index (PMI) climbed to 58.4, according to a new survey. This increase is attributed to strengthened output and rising new orders, alongside a surge in export demand.
Pranjul Bhandari, Chief India Economist at HSBC, highlighted robust end-demand driving expansions in output and job creation. The sector saw the fastest increase in external orders in over two decades, requiring firms to utilize existing inventories and boost input purchases.
A record increase in employment was observed, bolstered by short-term recruitment. While input prices moderated, firms passed additional costs to clients. Positive sector outlook persists despite challenges from competition and inflation, as reported by HSBC's PMI, compiled by S&P Global.
(With inputs from agencies.)
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