India Manufacturing PMI at 56.2 in August

1 Sep 2022 , 11:41 AM

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers Index (PMI) was little-changed from Julys reading of 56.4, posting 56.2 in August 2022. It signalled the second-strongest improvement in operating conditions since last November. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted. A sustained improvement in demand conditions boosted new order intakes at Indian manufacturers during August, which in turn pushed output growth to a nine-month high. Production volumes were also supported by a pick-up in exports and upbeat projections for the year-ahead outlook. Firms were at their most optimistic for six years. On the supply side, the results showed a further shortening of delivery times and a slower upturn in prices charged by vendors. The rate of input cost inflation softened to the weakest in a year, but the passing of higher freight, labour and material prices to clients kept the pace of increase in output prices little-changed from July, S&P Global said in a statement on Thursday (1 September 2022). Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: ?Indian manufacturers continued to benefit from the absence of COVID-19 restrictions, with rates of growth for both output and new orders picking up yet again to the strongest since last November. This robust performance was complemented by a fourth successive monthly slowdown in the rate of input cost inflation, which slipped to the lowest in a year amid softer pressures from commodity prices. Factory gate charges rose at the second-weakest pace since the start of fiscal year 2022/23, one that was similar to July. Firms welcomed the weaker increase in input costs with and upward revision to output forecasts amid renewed hopes that contained price pressures will help boost demand. Inflation concerns, which had dampened sentiment around mid-year, appear to have completely dissipated in August as seen by a jump in business confidence to a six-year high. Powered by Capital Market – Live News