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01.08.201801:19:00UTC+00India's Manufacturing Growth Eases In July

India's manufacturing activity continued to expand in July, though at a weaker pace than in the previous month, survey data from IHS Markit showed Wednesday.

The Nikkei manufacturing Purchasing Managers' Index, or PMI, fell to 52.3 in July from June's 6-month high of 53.1. However, any reading above 50 indicates expansion in the sector.

Among components, output, new orders and employment all increased at softer rates in July.

"However, we must not lose sight of the fact that the sector continued on a steady expansionary path, as production and new business rose at marked rates," Aashna Dodhia, Economist at IHS Markit.

Moreover, July survey data pointed to strong demand from both domestic and international sources.

On the price front, input price inflation remained sharp in July, but moderated from June's near four-year high.

Looking ahead, Indian manufacturing companies held optimistic projections for output in the next 12 months, underpinned by expected improvements in demand, promotional activities and expansion plans.



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