India's manufacturing sector activity decreased to its lowest level in nine months in June as production and sales growth both slowed down in the face of significant price pressure, monthly survey showd on Friday
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) fell to 53.9 in June from 54.6 in May, the weakest pace of growth since last September. For the twelfth consecutive month, the June PMI statistics indicated an improvement in overall operating conditions. In terms of the PMI, a reading above 50 indicates expansion and a print below 50 indicates contraction.
"The Indian manufacturing industry ended the first quarter of fiscal year 2022-23 on a solid footing, displaying encouraging resilience on the face of acute price pressures, rising interest rates, rupee depreciation and a challenging geopolitical landscape," said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
In June, factory orders and production increased for the twelfth consecutive month, although the rates of expansion in both cases slowed to nine-month lows. The poll found that although some respondents claimed that growth was constrained by severe inflationary pressures, increases were frequently attributed to higher client demand.
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