New Delhi: India’s factory activities continued to be strong but expanded at a slower pace in June 2023, with manufacturing PMI (Purchasing Managers’ Index) easing to 57.8 during the month from 58.7 in May, according to S&P Global survey findings released on Monday.
“Despite falling from 58.7 in May to 57.8, the headline figure pointed to a considerable improvement in operating conditions,” it said.
While a reading above 50 shows expansion, the print below it shows a contraction in manufacturing activities.
The survey said that surging demand for Indian goods translated into higher sales figures for manufacturers, which underpinned another robust expansion in input purchasing as firms actively procured resources to support production growth.
“Although the latest PMI results indicated input cost inflation, there was a marked increase in output charges. Positive demand dynamics and greater labour costs pushed charge inflation to a 13-month high,” said the publisher of the survey.
It was noted that central to the upturn in June was demand strength, which positively impacted several other measures such as sales, production, stock building, and employment.
“Indian goods producers registered a sharp increase in new work intakes during June, one that was among the strongest seen since February 2021,” said S&P Global.
In addition to favourable demand conditions, panellists linked the upturn to advertising and new product releases. Concurrently, new export orders rose solidly, though at a slower pace than in May.
“June’s PMI results again showed robust demand for Indian-made products, both in the domestic and international markets. Positive client interest continued to support the manufacturing industry, driving growth in output, employment, quantities of purchases, and input stocks,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.