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According to a monthly survey, June 2018 witnessed the highest-ever increase in manufacturing activity, due to a hike in domestic and export orders. This trend happened in spite of the highest increase in the input costs in nearly four years. Compared to 51.2 in May 2018, the Nikkei India
Manufacturing Purchasing Managers Index (PMI) rose to 53.1 in June this year. This has been the highest improvement since December last year. The manufacturing PMI maintained an above-50 mark for the 11 th consecutive month. The above-50 mark indicates an improvement; a below-50 mark indicates a contraction.
The author of the report, IHS Markit Economist Aashna Dodhia said that since December, the Indian manufacturing economy has witnessed resurgence, with a boost in demand conditions. The period has seen the most gains in output and new orders. Since December 2017, demand conditions strengthened, which made firms hire more staff, thereby making the manufacturing growth rate more pronounced. The report did not say anything about the increasing tensions in the global trade sectors, which have greatly perturbed manufacturers across many countries.
Input costs in June rose to 58.6 – a four-year-high – compared to 54.7 in May, signalling inflationary pressures. However, the manufacturers are not in favour of passing the burden on to the customers.
The decline in crude oil and natural gas production caused a drop in core infrastructure growth – a 10- month low of 3.6 per cent in May this year.
The Commerce and Industry ministry released a data, which showed that the eight sectors including coal, refinery products, fertilisers, steel and cement had expanded 3.9 per cent in May 2017.[/vc_column_text][/vc_column][/vc_row]
