A survey concluded that India’s Manufacturing sector activity eases to a 9-month low in June, reacting to the intense price pressures.
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 September 2021.
An improvement has been observed in the factory orders and production for the twelfth straight month in June 2022, although, in both cases, the rates of expansion eased to nine-month lows. Increases were commonly attributed to stronger client demand, although some survey participants indicated that growth was restricted by acute inflationary pressures, the survey said. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
An increase in a wide range of inputs was observed, including chemicals, electronics, energy, metals and textiles — which they partly passed on to clients in the form of higher selling prices.
Meanwhile, the Reserve Bank of India (RBI), in its financial stability report released on Thursday, said persistently high inflation globally is to stay longer than anticipated as the ongoing war in Europe and the pace of monetary policy tightening in response to mounting inflationary pressures take a toll on economies, threatening a further slowdown to global trade volumes.