Manufacturing activity eases but still robust

MANUFACTURING ACTIVITIES IN the country moderated in June from a multiyear high in May, but there still considerable was improvement in operating conditions as new orders expanded sharply, according to a monthly survey released on Monday.

Despite moderating from 58.7 in May to 57.8 in June, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index showed that Indian goods producers registered a sharp increase in new work intakes during June, which was also among the strongest seen since February 2021.

In addition to favourable demand conditions, panellists linked the upturn to advertising and new product releases. Concurrently, new export orders rose solidly, though at a slower pace than in May, the survey report noted.

Eight key infrastructure sectors grew 4.3% on year in May, the same rate as in the previous month but much slower than 19.3% in the year-ago month, official data showed last week. Strong expansion in the production of steel and cement, both construction inputs, as well as the coal segment boosted the relevant index, even as refinery products, the one with the highest weight, grew modestly.