India's Manufacturing PMI Expands At Fastest Rate To 53.1 In June

Driven by demand and consequently enhanced output, India's manufacturing PMI has expanded at the highest pace in the June month to 53.1 as against 51.2 in the earlier month.

At the same as per the business survey the cost of input material has also increased at the fastest pace in four years. The momentum in factory growth highlights strong economic activity for the last ended quarter in June, after the country witnessed the fastest growth in nearly two years in the January-March period.

In the Reuters report, the chief economic at IHS Markit is quoted as saying, "India's manufacturing economy closed the quarter on a solid footing against a backdrop of robust demand conditions, highlighted by the sharpest gains in output and new orders since last December".

The strong factory growth is also been fuelled by the demand from the international markets.

The inflationary pressure though cannot be sidelined as for the month input cost has risen to the highest in four years to 58.6. But this heightened cost is unlikely to be passed on to consumers at the moment.

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