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New business and production in manufacturing sector increase marginally, PMI data released
August PMI: The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) stood at 57.5 in August. This figure is lower than the reading of 58.1 in July, but it remained above the long-term average of 54.0, indicating substantial improvement in operating conditions.
Growth in India's manufacturing sector slowed in August as production and sales grew at the slowest rate since January, while business confidence was compromised by competitive pressures and concerns over inflation. According to a monthly survey on Monday,.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index, a composite indicator designed to provide a single-number overview of operating conditions in the manufacturing economy, stood at 57.5 in August, down from 58.1 in July, although still well above the long-run average of 54.0.
In PMI terminology, a print above 50 is considered expansion, while a number below that level represents contraction. "The Indian manufacturing sector continued to expand in August, although the pace of expansion slowed slightly. New orders and output also mirrored the headline trend, with some panelists citing fierce competition as a reason for the slowdown," said Pranjul Bhandari, chief India economist at HSBC.
