In contrast to the June manufacturing PMI which came in a tad lower at 52.1, July PMI provides some optimism even as the core sector that accounts for 8 of the major industrial sectors registered a 50-month low level. The level of 50 separates expansion from contraction.
The index compiled by IHS Markit and is a part of a survey which was conducted among purchasing executives in more than 400 companies. The companies covered have been divided into 8 different categories namely basic metals, chemicals and plastics, electrical and optical, food and drink, mechanical engineering, textiles clothing, timber and paper, and transport.
The principal economist after the release of the report said that some momentum has been regained following a slowdown witnessed at the start of the FY'20.
The measures relating to production, employment, factory orders have gained pace during the period under review even as the rate of expansion continued to be below trend.The growth hike is further attributed to an increase in demand.