After robust GDP data for the quarter ended June that recorded multi-year highs at 8.2%, manufacturing data for the month of August are out today. The growth in the manufacturing activity has slowed down its pace for the month backed by a slower growth in demand in the domestic market in comparison to the previous month whilst export order grew at the strongest pace since the month of February.
In the month of August, the manufacturing index declined to 51.7 as against 52.3 recorded for the month of July. It is due to the fact that operating environment showed improvement at the slowest rate since the month of May.
Nonetheless, the country has registered a figure over 50 for the 13th straight month.
Also, due to the sustained levels in the increase of new orders and output, firms in the month of August increased their staff.
Another point worth highlighting is the impact of declining rupee on the input cost which has increased substantially for manufacturing concerns. And to counter it firms have raised their selling prices for the thirteenth month.
In the latest GDP data for the quarter ended June, the Indian economy showed a better than expected GDP growth of 8.2% due to strong support from both the manufacturing and farm sector.