Manufacturing Growth Hits 3-month High In June

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India's manufacturing activity expanded at the quickest pace in three months in June as the country's factories boosted production amid higher new order inflows, signaling an improved outlook for Asia's third biggest economy, which has been rightly touted as the 'bright spot' in a struggling world economy.

Manufacturing Growth Hits 3-month High In June
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 51.7 in June from 50.7 in May, with a reading above 50 signaling expansion, Markit Economics reported on Friday.

Output and new orders in the Indian manufacturing sector reached three-month highs in June, with consumer goods emerging as the best performing category, the survey showed.

Further, new export orders rebounded from the decline witnessed in May which was the first in 32 months.

Even as input costs rose for the ninth month on the trot in June, the rate of inflation softened to the weakest since March and factory gate charges were mainly unchanged, leaving further room for the RBI to cut interest rates in the coming months.

Further, employment at the country's factories was broadly unchanged in June.

"Indian factories registered a welcome upturn in growth of both production and new orders mid-way through 2016. The domestic market continues to be the main growth driver", Markit Economics said.

Read more about: manufacturing
Story first published: Friday, July 1, 2016, 12:50 [IST]
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