New Delhi: India’s manufacturing sector grew at faster pace in June this year compared to the previous month on the back of increased new orders and output, said a private survey released on Monday, reflecting strong growth momentum in the economy.
The HSBC India manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, accelerated to 58.3 in June this year from 57.5 in the previous month.
A PMI print below 50 means contraction while above it shows expansion in activities.
The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. It is one of the closely-watched high-frequency data by economists, markets and policy-makers.
“The Indian manufacturing sector ended the June quarter on a stronger footing. The headline manufacturing PMI rose by 0.8 percentage points to 58.3 in June, supported by increased new orders and output. Consequently, firms increased their hiring at the fastest pace in over 19 years,” said Maitreyi Das, Global Economist at HSBC.
The survey said that manufacturing output increased at a sharp pace in June compared to previous month as underlying demand remained favourable and new business continued to flow in.
“The performance of the consumer goods industry was especially strong, although substantial increases were also noted in the intermediate and investment goods categories,” it said.
As per the survey, June saw a stronger expansion in sales at manufacturers in India. Buoyant underlying demand, higher export volumes and successful advertising all fuelled growth, anecdotal evidence showed.
“As a consequence of ongoing increases in new order intakes, firms stepped up recruitment. The rate of job creation was sharp and the strongest seen since data collection started in March 2005,” the survey said.
