ANI
02 Aug 2021, 14:48 GMT+10
New Delhi [India], August 2 (ANI): Operating conditions in India improved during July after growth was halted by the escalation of the pandemic in June, according to the latest IHS Markit Manufacturing PMI released on Monday.
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.
Meanwhile, there was softer but still sharp increase in input costs. Output charges rose only slightly, however, as several companies absorbed additional cost burdens amid efforts to boost sales.
After slipping into contraction for the first time in 11 months during June, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) moved back above the critical 50 threshold in July.
The headline figure was up from 48.1 to 55.3, pointing to the strongest rate of growth in three months.
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.
Rising sales supported a recovery in output which increased in July after falling for the first time in 11 months during June. The rate of production growth was sharp and outpaced its long-run average.
In tandem with sales growth and rising production requirements, manufacturers hired extra workers in July. The increase in employment was mild, but ended a 15-month sequence of job shedding.
Companies also purchased additional inputs for use in the production process. The overall rate of buying activity growth was solid by historical standards.
In turn, goods producers saw an increase in their stocks of purchases during July. The accumulation was marked and followed a decline in June.
Indian firms foresee output growth in the year ahead, with the end of the pandemic and rising sales expected to support the upturn.
The overall level of positive sentiment rose from June's 11-month low, but remained historically subdued as some companies were concerned about the path of the pandemic.
Pollyanna De Lima, Economics Associate Director at IHS Markit, said policymakers will welcome evidence that inflationary pressures are starting to abate.
"Hence, we expect the Reserve Bank of India to keep interest rates unchanged in its August meeting as it continues to support growth."The IHS Markit India Manufacturing PMI is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size based on contributions to GDP.
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government. (ANI)Get a daily dose of San Jose Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to San Jose Sun.
More Information(Photo credit: Gary Mook/For IndyStar / USA TODAY NETWORK via Imagn Images) On Carburetion Day, better known as Carb Day, at the...
When you?re betting on sports, you want to get the best odds. Most leading online sportsbooks cover the same sports, events, tournaments,...
Washington DC [US], May 21 (ANI): Singer, actor Lady Gaga has won a Sports Emmy for her Super Bowl performance of 'Hold My Hand' at...
Wide receiver Brian Thomas Jr. of the Jacksonville Jaguars catches the football during the NFL Pro Bowl flag football game at Nicholson...
Teresa Varley Learn more about defensive tackle Daniel Ekuale in this edition of Five Fast Facts. 1. Ekuale was signed to a one-year...
Teresa Varley Saturday, May 24 Steel Curtain returns:The Steel Curtain is back in action at Kennywood Park. After being closed...
MINNETONKA, Minnesota: UnitedHealth shares took a sharp hit this week, after a report by the UK's Guardian alleged the healthcare giant...
HUNG YEN, Vietnam: A new US$1.5 billion luxury golf and residential project backed by the Trump Organization officially broke ground...
SYDNEY, Australia: Australian businesses are feeling optimistic about their prospects in China despite escalating global trade tensions,...
MOSCOW, Russia: Russia's top oil company, Rosneft, has taken over control of the country's largest rare earth metals deposit, Tomtor,...
GOTHENBURG, Sweden: Volvo Cars is stepping up its collaboration with Google to become the lead development partner for Android automotive...
NEW YORK, New York - U.S. stock markets fell Friday as President Donald Trump launched an extraordinary attack on the European Union,...