India's Manufacturing PMI Surges To 58.3 In June Amid Record Job Growth

Swarajya Staff

Jul 01, 2024, 11:32 AM | Updated 12:45 PM IST

Manufacturing (Representative image)
Manufacturing (Representative image)

India’s manufacturing sector activity picked up in June, as per the HSBC India Manufacturing Purchasing Managers’ Index (PMI) which increased to 58.3 from the three-month low of 57.5 recorded in May.

“The Indian manufacturing sector ended the June quarter on a stronger footing. The headline manufacturing PMI rose by 0.8 percentage points to 58.3 in June, supported by increased new orders and output," Maitreyi Das, global economist, HSBC.

According to the private survey released on Monday, the PMI Index, compiled by S&P Global, improved due to a rise in new orders. The seasonally adjusted HSBC India Manufacturing PMI remained above the long-term average, boosting employment, which grew at its fastest pace in over 19 years.

The Purchasing Managers' Index (PMI) is a leading economic indicator derived from data collected from various companies. It is calculated based on surveys covering employment, new orders, production, inventory levels, and supplier deliveries. This index helps determine whether market conditions, as perceived by purchasing managers, are expanding, contracting, or remaining stable.

In PMI terms, a reading above 50 indicates expansion compared to the previous month, below 50 signifies contraction, and a PMI of 50 suggests stability. The PMI provides insight into the economic direction, aiding in decisions regarding production needs based on anticipated new orders in the coming months.

"The performance of the consumer goods industry was especially strong, although substantial increases were also noted in the intermediate and investment goods categories," the report highlighted.

The 400 firms surveyed for the index recorded another month of strong growth in new export orders, with Asia, Australia, Brazil, Canada, Europe, and the US being the driving economies.

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