India’s manufacturing PMI surges to 58.6 in August, highest since May; but employment growth slows
India’s manufacturing sector showcased its fastest growth in three months in August, driven by robust growth in new orders and output increase, according to S&P Global monthly survey. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.6 in August from July’s 57.7, indicating the second-best improvement in the health of the sector for nearly three years. Demand strength was pivotal to August’s robust performance, spurring the fastest upturn in new orders since January 2021. Competitive pricing and advertising were also cited as factors behind sales growth, the survey said.
Further, international sales too added to manufacturers’ total order books. “Not only did new export orders increase for the seventeenth month running halfway through the second fiscal quarter, but also to the greatest extent since November 2022,” it said. Meanwhile, a healthy demand environment and favourable market conditions led to output increase for the twenty-sixth successive month, and to the greatest extent in just under three years.
The output increase led to manufacturers purchasing additional raw materials and semi-finished items in August, which subsequently resulted in sharp rise in buying levels, which was at one of the fastest rates seen in over 12 years.
However, S&P Global survey maintained that overall employment rose at the slowest pace in four months. “Indian manufacturers reportedly hired a combination of permanent and temporary staff on both part- and full-time bases. New order growth was cited as the main reason behind job creation. Overall employment rose at the slowest pace in four months, but one that was above the series trend,” it said.
This is a welcome figure for the
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