India’s manufacturing sector is showing resilience, with the June PMI reading at 58.3

New Delhi, July 1 (KNN) India’s manufacturing sector showed resilience in June, with HSBC’s final India Purchasing Managers’ Index (PMI) rising to 58.3 from a three-month low of 57.5 in May.

The index developed by S&P Global indicates a clear improvement in business conditions, although it is slightly lower than the initial estimate of 58.5.

The June PMI, almost five points above its long-term average, reflects a solid recovery in the manufacturing sector.

Good demand conditions contributed to an increase in new orders, production and purchasing levels. Notably, companies added employment at the fastest rate recorded in more than 19 years of data.

Maitreyi Das, global economist at HSBC, commented on the sector’s performance, stating: “India’s manufacturing sector ended the June quarter in a stronger position. The headline manufacturing PMI rose 0.8 percentage points to 58.3 in June, driven by stronger growth in new orders and exits.

Although production costs declined slightly in June, they remain elevated and the inflation rate is one of the highest since August 2022.

Manufacturers were able to pass on higher costs to customers as demand remained high, potentially improving margins.

The consumer goods industry performed particularly well, with strong sales expansion seen across the manufacturing sector.

Growth was further boosted by higher export volumes and successful advertising campaigns.

Export orders saw significant growth, with improved demand seen in many global markets including Asia, Australia, Brazil, Canada, Europe and the United States.

Despite the overall positive outlook, the index for future production fell to a three-month low, although it remains above the historical average.

The pace of job creation was strong and the highest since data began in March 2005, driven by continued growth in new orders.

The report also highlighted that producers of intermediate goods saw the fastest growth in input costs, while producers of consumer goods led the increase in production fees. Selling prices increased by the largest amount in over two years.

As the Indian manufacturing sector shows signs of resilience and growth, stakeholders will closely monitor future developments, especially in light of global economic uncertainty and inflationary pressures.

(KNN Office)