Recording “solid improvement”, manufacturing sector growth touched a 13-month high in August bolstered by expansion in new works as well as acceleration in buying and production levels, says a survey.
Nikkei India Manufacturing PMI jumped to 52.6 in August from 51.8 in July as “Indian manufacturers enjoyed a solid improvement in operating conditions” last month.
A reading above 50 indicates expansion.
The Purchasing Managers’ Index climbed on the back of a sharp upturn in new business inflows which expanded at the fastest pace since December 2014.
Consumer goods producers led the increase, although solid growth was also seen in the intermediate and capital goods categories.
“Manufacturing PMI data show that the positive momentum seen at the beginning of the second semester has been carried over into August, with expansion rates for new works, buying levels and production accelerating further,” Economist at IHS Markit and the report’s author Pollyanna De Lima said today.
Moreover, the sector’s growth dynamics for the near term are encouraging as companies would likely continue their efforts to replenish stocks, Lima said, adding that IHS Markit forecast a “robust 7.5 percent increase in real GDP during the fiscal year 2016/17”.
According to the report, manufacturers indicated that both domestic and international external markets had been sources of incoming new work and last month also saw new export orders expand at the quickest rate in one year.