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Key Points

India's manufacturing sector achieved remarkable growth in August with the PMI climbing to 59.3. This represents the fastest improvement in operating conditions in over 17 years, driven primarily by robust production volumes and strong domestic demand. The intermediate goods category led this expansion, followed by capital and consumer goods sectors. Manufacturers demonstrated increased confidence by expanding their workforce for the eighteenth straight month and boosting input purchases.

Key Points: India Manufacturing PMI Hits 17-Year High at 59.3 in August

  • PMI rose to 59.3 from 59.1 in July signaling strongest growth in 17 years
  • Domestic buyers and successful advertising campaigns fueled demand surge
  • Intermediate goods category showed strongest sales and output performance
  • Manufacturers expanded workforce for eighteenth consecutive month in August
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India's manufacturing PMI hits another new high in August driven by robust production

India's manufacturing PMI reaches 59.3 in August, marking the fastest improvement in operating conditions in 17.5 years, driven by robust production and new orders.

"India’s manufacturing PMI hit another new high in August, driven by a rapid expansion in production - Pranjul Bhandari, HSBC"

New Delhi, Sep 1

Riding on new orders and strong production, India’s manufacturing sector saw a robust growth in the month of August, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to 59.3 from 59.1 in July, a report showed on Monday.

S&P Global data showed that the PMI reading signalled the fastest improvement in operating conditions in 17 years and six months. Much of this strength came from domestic buyers, with manufacturers pointing to successful advertising campaigns. In addition to demand buoyancy, survey participants linked growth to advertising success..

The strongest sales and output performances were noted in the intermediate goods category, followed by capital and then consumer goods.

“India’s manufacturing PMI hit another new high in August, driven by a rapid expansion in production," said Pranjul Bhandari, chief India economist at HSBC.

The strongest sales and output performances came in the intermediate goods category, followed by capital and then consumer goods. Surveyed businesses reported higher input stocks, while the finished products inventories also expanded for the first time in nine months.

According to the report, there was a mild increase in international orders placed. Companies also accelerated purchases of additional materials and added more jobs, partly driven by optimism about the business outlook.

Indian manufacturers also continued to expand their workforce, with employment rising for the eighteenth straight month in August.

One factor that supported these positive spending trends was confidence among manufacturers that output would increase over the course of the coming 12 months. The overall level of positive sentiment recovered from July's three-year low, according to the report.

The upward movement in the headline figure largely reflected an acceleration in growth of production volumes, stated the report. The rate of expansion was the quickest in close to five years.

—IANS

- IANS

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Reader Comments

P
Priya S
Great to see intermediate and capital goods leading the growth. This indicates strong industrial investment which bodes well for long-term development. Hope this momentum continues!
M
Michael C
While the numbers look impressive, I hope this growth is sustainable and reaches smaller manufacturers too. Sometimes these indices don't reflect the ground reality for MSMEs.
A
Aditya G
The fact that this is driven by domestic demand rather than exports is actually good news. Shows our internal market is strong enough to drive growth even when global markets are uncertain.
S
Shreya B
️ 59.3 PMI is outstanding! Fastest improvement in 17 years says it all. Hope this translates into better salaries and working conditions for factory workers too.
K
Karthik V
The employment growth for 18 months straight is the real achievement here. Manufacturing jobs create stable incomes and help lift families out of poverty. This is the development we want to see!

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