: Manufacturing PMI marginally down from 56.4 in July to 56.2 in Aug #finance #StockMarketNEWS Manufacturing PMI marginally down from 56.4 in July to 56.2 in Aug New Delhi, Sept 1 (KNN) The S&P

Manufacturing PMI marginally down from 56.4 in July to 56.2 in Aug #finance #StockMarketNEWS
Manufacturing PMI marginally down from 56.4 in July to 56.2 in Aug New Delhi, Sept 1 (KNN) The S&P Global Purchasing Managers Index (PMI) decreased to 56.2 in August from 56.4 in July, however it marked the second best index reading since last November.

The survey stated that sustained improvement in demand conditions boosted new orders intakes during the month of August, which in turn helped push output-growth to a nine month high.

Lower prices of some commodities such as aluminium and steel played an important role in soothing down the inflationary pressures. However, despite cooling for a fourth month, the input cost inflation was broadly in line with its long-run average.

"This robust performance was complemented by a fourth successive monthly slowdown in the rate of input cost inflation, which slipped to the lowest in a year amid softer pressures from commodity prices," said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

The rising inflation can be a concern for firms and has weighed on consumers wallets, hitting demand.

To try and combat inflation, the Reserve Bank of India (RBI) started hiking interest rates in May from a pandemic low and is expected to make more increases this fiscal year, a Reuters poll showed.

According to reports, the said growth is likely to lose momentum in coming quarters as higher interest rates cool economic activity.

Firms again increased their selling prices, passing on some of the greater freight, labour and material costs to clients. However, the rise was marginal.

The new orders sub-index rose to a 9-month high on increased underlying demand, while the pace of expansion in output was the strongest since November.International demand, which has been in expansionary territory since March, rose significantly last month from July.

Business expectations distinctly improved in August on strong sales forecasts, boosting the index to its highest since August 2016.

"Inflation concerns, which had dampened sentiment around mid-year, appear to have completely dissipated in August as seen by a jump in business confidence to a six-year high," added De Lima.

The hiring in the manufacturing sector during this period remained subdued. (KNN Bureau)