India’s manufacturing conditions
improved in June at the strongest pace in 2018 so far, as favourable demand
conditions led to greater output, a private survey showed.
The Nikkei India Manufacturing Purchasing
Managers' Index, or PMI, rose to 53.1 in June from 51.2 in May.
This is the 11th consecutive month that
the manufacturing PMI remained above the 50-point mark-a score above 50 means
expansion, while below that denotes contraction.
Orders from international markets rose at the
strongest pace since February.
As per the survey, the rate of growth of
manufacturing production was the most pronounced since last December. Moreover,
stronger demand conditions made firms raise their staffing levels.
On the price front, input cost inflation and
output charges rose at a stronger pace, indicating that the central bank might
tighten the monetary policy.
In June the Reserve Bank of India had upped its
retail inflation projection by 0.30% and kept the policy stance in the neutral
zone, even as it hiked the key rate by 0.25% to 6.25%.
Meanwhile, business confidence eased to the
weakest since last October, and the dip in optimism partly reflected concerns
of a potential market slowdown in the year ahead.