Indian manufacturing activity improves in month of July
The report further said that factory orders rose amid reports of improved demand and the easing of some local COVID-19 restrictions
Indian manufacturing activity improved in the month of July, as output, new orders, exports, quantity of purchases and input stocks all returned to expansion territory, while a marginal increase in employment ended a 15-month sequence of job shedding. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 55.3 in July as against 48.1 in June.
The report further said that factory orders rose amid reports of improved demand and the easing of some local COVID-19 restrictions. The upturn was sharp and compared with a marked decline in June. Strengthening international demand contributed to the uptick in total order books. New export orders expanded markedly in July, following a moderate contraction in June.
On the price front, with demand for inputs outstripping supply, there was another substantial increase in purchasing prices. The rate of cost inflation remained above its long-run average, but eased to a seven-month low. Output charges also increased at a slower rate, the weakest in 2021 so far. But here the rate of inflation was slight and below its long-run average.