The Indian manufacturing sector maintained strong growth momentum at the start of the third quarter (July-September 2023) amid ongoing buoyant demand.
According to S&P Global’s India Manufacturing Purchasing Managers’ Index, it marginally fell from 57.8 in June to 57.7 in July. 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.
Rates of expansion in output and new orders by companies were only marginally softer than in June, with firms expanding their employment and purchasing activity accordingly, it said. Cost inflationary pressures remained relatively muted.
It said growth in new export business picked up to the fastest since last November. Respondents noted increases in new orders from customers in the US and neighbouring countries such as Bangladesh and Nepal.
“The Indian manufacturing sector showed little sign of losing growth momentum in July as production lines continued to motor on the back of strong new order growth,” said Andrew Harker, Economics Director at S&P Global Market Intelligence.
“All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world,” said Harker.