Shock to the government on the manufacturing front, less growth than in May

The Manufacturing PMI has remained above the 50-mark for two consecutive years, indicating growth in the sector. The continuous boom is a positive sign for India's manufacturing industry.

For the past several months, there has been an increase in manufacturing activity in the country, in the month of May this figure had crossed 58 points or should say it had reached close to 59 points. It was expected to get better in June, but had to stand at 57 points as compared to May. According to the report, this figure is also considered to be the second best of this year. If experts are to be believed, then in the coming months, its growth can be seen more rapidly.

Decreased manufacturing PMI

According to the latest data from the Manufacturing Purchasing Managers' Index ie PMI released by S&P Global, the reading has been seen at 57.8 in June. In the month of May this figure was 58.7. These figures are slightly less than the expectation of 58 Reuters polls. The Manufacturing PMI has remained above the 50-mark for two consecutive years, indicating growth in the sector. The continued growth is a positive sign for India's manufacturing industry, which continues to display resilience and strength despite facing rising inflationary pressures.

Demand is strong

Reuters quoted Poliana de Lima, economist associate director of S&P Global Market Intelligence, as saying that the June PMI results again showed strong demand for Indian manufactured products in domestic and international markets. Sustained demand from customers continued to support the manufacturing industry, leading to an increase in production, employment, purchasing volumes and input stocks. Despite a slight decline in the sub-index as compared to May due to strong domestic and international demand, new orders and production increased at a brisk pace and overseas demand increased for the 15th consecutive month.

Rise in input cost

In the month of June, there has been an increase in the workforce for the third consecutive month. However, the employment index was second only to November. Input costs have seen an increase in June due to higher prices of labor and some raw materials, but the rate of inflation has been seen only marginally higher than May and less than the long-term average. Companies passed on the cost to customers and the Output Value Index reached a 13-month high.