India's manufacturing activity continued to expand strongly in June, thanks to greater demand for India-made products both domestically and internationally, the results of the purchasing managers' survey from S&P Global showed on Monday.
The manufacturing Purchasing Managers' Index, or PMI, dropped to 57.8 in June from 58.7 in May.
However, a reading above 50 indicates expansion in the sector. The expected score was 58.0.
In June, a strong demand environment led to an upturn in sales, production, stock building, and employment.
The rate of growth in new orders was among the strongest seen since February 2021. Further, new export orders also increased solidly, though at a slower pace compared to May.
Companies ramped up production in June to meet rising sales. The expansion in output was sharp and among the fastest over the past year-and-a-half.
On the price front, although average input prices increased in June, the rate of inflation was mild by historical standards and among the lowest seen in the past three years.
In June, manufacturers increased their selling prices in response to a buoyant client market. The rate of charge inflation was markedly higher, the strongest in 13 months.
Indian manufacturers purchased additional inputs at the end of the second quarter. The increase was substantial and the second-strongest in over twelve years.
In order to expand capacities, goods producers lifted their employment levels in June, though at a moderate pace.
Indian manufacturers remained optimistic about growth prospects on the back of demand strength, new client inquiries, and marketing efforts.
