Manufacturing PMI: India’s Manufacturing Activity Rises At Slower Pace In June

India’s manufacturing activity rose at a slower pace in June as a softer increase in new work intakes translated into slower output growth.

The Nikkei India Manufacturing Purchasing Managers’ Index fell to 52.1 last month from 52.7 in May, according to a statement. This was the twenty-third straight month when the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Consumer goods were the key source of growth during the month, according to the statement, where robust increase in sales, output and employment were registered. Job growth stagnated in the intermediate goods segment.

“PMI data highlighted a slight setback in the Indian manufacturing sector in June. Gauges of factory orders, production, employment and exports remained inside growth territory, but rates of expansion softened in all cases as domestic and international demand showed some signs of fading,” said Pollyanna de Lima, principal economist at IHS Markit.

While overall sentiment weakened from that recorded in May, manufacturers remained upbeat about growth prospects and forecasts of a pick-up in demand going ahead.