India's manufacturing activity logged a further strong expansion in July amid on-going buoyant demand, the results of the purchasing managers' survey from S&P Global showed on Tuesday.
The manufacturing Purchasing Managers' Index, or PMI, dropped marginally to 57.7 in July from 57.8 in June.
However, a reading above 50 indicates expansion in the sector. The expected score was 57.0.
New orders showed further sharp growth in July, and export orders rose at the quickest pace in eight months, stemming from greater demand from customers in the US and neighboring countries such as Bangladesh and Nepal.
Consequently, output increased substantially at the start of the third quarter, though it was the softest in three months.
Firms raised their staffing numbers, and the rate of job creation was broadly in line with those seen in the previous two months.
On the price front, input price inflation accelerated to a 9-month high in July, linked to higher costs for raw materials, especially cotton. As a result, firms were forced to raise their selling prices, but the rate of inflation eased to a 3-month low.
In general, companies anticipate that demand will stay high over the upcoming year, supporting projections for output expansion.
"All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world," Andrew Harker, economics director at S&P Global Market Intelligence, said.
