The day the day India had been waiting for the last 16 months, that month started as soon as the month of August started. India got a big good news after 16 months. Which can also improve the health of the country’s economy to a great extent. In fact, India’s manufacturing sector has reached 16 months of peak. Talking about the data, the PMI of the country was seen on this front at 59.1. The reason for this is the boom in new orders and production amid favorable demand conditions. The seasonally adjusted ‘HSBC India Manufacturing PMI increased from 58.4 of June to 59.1 in July. This is a sign of the strongest improvement in the region since March 2024. Being an index above 50 index under PMI means expansion in production activities while the figure below 50 reflects contraction.
Why manufacturing PMI increased
HSBC chief Indian economist Pranjul Bhandari said that the growth rate of India’s manufacturing sector was 59.1 in July, which is more than 58.4 in the previous month. This is the highest rate recorded in 16 months which was strengthened by strong growth in new orders and production. According to the survey, the total sales increased at the fastest speed in about five years. After this, production growth in July increased to 15 months high. Regarding business Outlook, the survey said that Indian manufacturers are confident of increasing production in the next 12 months but the level of overall positive spirit has come to its low level in three years.
Raw material prices increase
The survey on the price front said that the cost pressure increased in July. The average cost of raw materials increased rapidly compared to June amid reports of increase in prices of aluminum, leather, rubber and steel. It said that according to the members of the committee, it was possible to increase their fees from the situation of favorable demand. HSBC India Manufacturing PMI has been prepared by S&P Global on the basis of answers to questions sent to purchasing managers in a group of about 400 manufacturers.