August cheer: Numbers show economy on firm ground
Several other high-frequency indicators for August released on Friday showed the economy remained firm, resisting high inflation, elevated interest rates, rising crude prices, patchy monsoon, and global slowdown, among others.
Data released on Thursday showed the economy grew 7.8% in the April-June quarter, the fastest in a year. The available numbers for July and August indicated continuing momentum in second quarter.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose to 58.6 last month compared with 57.7 in July, according to data released Friday by S&P Global Market Intelligence.
A PMI print above 50 means expansion while a score below 50 indicates contraction.
Carmakers despatched 369,000 units in August as compared to 327,000 units in the same period a year ago, a 12.8% increase, and exceeding the previous high of 355,000 in September 2022, validating the strong PMI numbers.
The demand for aviation turbine fuel (ATF) rose 9.5% year-on-year in August, underlining the continuing surge in air travel.
'Positive signs'
«These are very positive signs for industry and the economy. PMI shows growing industry confidence.
GST being high is aided by compliance and inflation. Need to see if it can be sustained in October-November,» said Madan Sabnavis, chief economist, Bank of Baroda.
Unified Payments Interface (UPI), the real-time payment mechanism run by the National Payments Corporation of India, crossed 10 billion transactions for the first time in August.
As on August 11, bank credit was up 19.7% from a year earlier, according to the latest Reserve Bank of India data.
The PMI data showed sales and production rose at the fastest pace in almost three years in August while input
