The fastest improvement of 17 years in the country’s manufacturing sector, 18 consecutives in August
India The manufacturing sector recorded the fastest improvement of 17 years in the month of August this year, which was inspired by an increase in production capacity as well as healthy demand. This information was given in a monthly report on Monday. The seasonally adjusted ‘HSBC India Manufacturing Purchase Manager Index’ (PMI) increased from 59.1 in July to 59.3 in August. This shows the fastest improvement in operating conditions in the last 17 and a half years. Being a index above 50 index under PMI means expansion in production activities while the figure below 50 reflects contraction.
Employment increased for 18th consecutive month in August
Pranjul Bhandari, the chief Indian economist of HSBC, said, “India’s manufacturing sector reached another new level in August, which has gained a rapid expansion in production.” Meanwhile, in the meantime, the upcoming new order increased equal to July which was the fastest in 57 months. The report on the employment front states that employment has increased for the 18th consecutive month in August. However, this is the lowest since November 2024. Meanwhile, the Indian economy increased by an increase of more than an expected 7.8 percent in April-June, the fastest speed among the last five quarters.
The impact of trade deadlock with America will be seen in the second quarter
Chief Economic Advisor (CEA) V. Anant Nagswaran has said that trade standoff with the US is currently going on. It will see some effect in the second quarter, as increased tariffs on Indian exports have come into force in August. Let us tell you that the US has implemented a total of 50 percent tariffs on India. On the instructions of President Donald Trump, the US first imposed 25 percent tariff on India and later 25 percent of additional tariffs were implemented due to purchasing crude oil from Russia. HSBC India Manufacturing PMI has been prepared by S&P Global on the basis of answers to questions sent to purchasing managers in a group of around 400 manufacturers.
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