Manufacturing activity improves
Manufacturing activity in the country’s industrial belt improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders, a survey showed.
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI)) rose from 51.2 in May to 53.1in June. Reflecting greater production requirements, firms were encouraged to engage in purchasing activity and raise their staffing levels.
However, separate data by the government showed that growth in the eight core Manufacturing PMI at 6-month high 54.7 sectors — coal, crude oil, natural gas, refinery production, fertilizer, steel, cement and electricity — slowed to a 10-month low of 3.6% in, May dragged down by crude Core sector growth (%) at 10-month low 6.9 6.2 oil and natural gas output and sluggish performance by steel and cement sectors.
The eight core sectors account for 40.3% of the index of industrial production.