Manufacturing sector in India continue to rise for the fourth month in July. The business was backed by stronger upturn in new orders from domestic and external markets and the total new business rose at the fastest pace since March.
The Nikkei Markit India, Manufacturing Purchasing Managers’ Index (PMI) gives a composite indicator of excellent manufacturing performance which is rose to 51.8 in July from 51.7 in June.
Offering respite to firms, cost burdens rose at a modest and slower rate. The improving demand environment meant that businesses were able to raise their own charges in July, the PMI report said.
“India’s manufacturing economy is reviving at the beginning of the second half of 2016 after the slowdown seen in April-June quarter, as growth of both production and new orders continues to strengthen in July,” Pollyanna De Lima, Economist at Markit and author of the report, said.
Although output expanded at the fastest rate but businesses refrained from creating jobs. “The ongoing muted trend for employment indicates that companies remain somewhat uncertain regarding the sustainability of the upturn,” Lima added.