India's Manufacturing PMI Eases In June But Continues To Expand
The India Manufacturing Purchasing Managers’ Index stood at 53.9 in June against 54.6 in May.
A gauge of activity across India’s manufacturing sector dropped but remained in the expansion zone.
The India Manufacturing Purchasing Managers’ Index stood at 53.9 in June against 54.6 in May, according to a media statement by IHS Markit. A reading above 50 indicates economic expansion.
Softer increases in production, factory orders, stocks of purchases and employment all dragged down the PMI in June. Factory orders and production rose for the twelfth straight month, but their rates of expansion eased to nine-month lows. Increases were led by stronger client demand.
Rates of purchase price and output charge inflation retreated to three-month lows, but remained above their respective long-run averages. Monitored firms reported increases for a wide range of inputs, including chemicals, electronics, energy, metals and textiles, which they partly passed on to clients in the form of higher selling prices.
New export orders rose for the third month. The increase was strong by historical standards despite easing from May’s 11-year high.
Sustained growth of production and sales meant that hiring efforts were extended to June. Employment rose for the fourth successive month, albeit at a slight pace. Job creation restricted backlog growth, which increased at the slowest pace in three months.
Although the outlook for the Indian manufacturing industry remained positive midway through 2022, sentiment slipped to a 27-month low. Fewer than 4% of panelists forecast output growth in the year ahead, while the vast majority expect no change from present levels. Inflation was the main concern among goods producers.