India's manufacturing PMI rises to 58.3 in June, fastest rate of hiring in 19 years
The HSBC final India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.3 in June.
India's manufacturing activity rose owing to increased robust demand leading to the fastest rate of hiring in more than 19 years despite inflationary pressures remaining elevated, a survey showed.
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The HSBC final India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.3 in June. This is slightly below the preliminary estimate of 58.5 but up from 57.5 in May.
Maitreyi Das, global economist at HSBC, said, "The Indian manufacturing sector ended the June quarter on stronger footing. While the overall outlook for the manufacturing sector remains positive, the future output index receded to a three-month low, albeit it remains above the historical average."
What about inflation?
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The survey showed that inflationary pressures remained elevated as cost prices increased at a marginally slower pace from May.
"Manufacturers were able to pass on higher costs to customers, as demand remained robust, resulting in improved margin," Maitreyi Das said.
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The latest survey by news agency Reuters showed that inflation will average near the mid-point of the Reserve Bank of India's (RBI) target range of 2-6%, at 4.6% and 4.5% in the current and next fiscal years. The RBI was expected to lower its interest rate next quarter by 25 basis points to 6.25%, followed by another cut of the same size in the January-March quarter, the survey showed.
