New orders drive manufacturing to fastest three-month growth in August
- IBJ Bureau
- Sep 02, 2023
Manufacturing sector experienced its fastest growth in three months in August, propelled by robust increases in new orders and production, as indicated by a private survey.
The Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, surged to 58.6 last month from July’s 57.7, reaching its highest point since May.
Notably, this expansion marked a 26-month stretch above the 50-mark, a demarcation indicating growth over contraction. This continuous growth streak is the longest since March 2020 when pandemic-triggered lockdowns were enforced.
This development bodes well for Asia’s third-largest economy, which expanded by 7.8 per cent in the April-June period. Driven by sturdy demand, the country is expected to maintain its position as a beacon of hope in the global economy.
Pollyanna De Lima, associate director of economics at S&P Global, highlighted the upbeat depiction of India’s manufacturing landscape in August. The accelerated growth in new orders and production is projected to contribute significantly to the economy’s second-quarter expansion.
“The PMI results for India painted a vibrant picture of the nation’s manufacturing landscape in August. Robust and accelerated increases in new orders and production suggest... strong contribution to second quarter economic growth,” she noted.