<p>India’s manufacturing activities growth eased to a three-month low in July due to lower expansion in output and new orders even though exports business picked up on the back of new orders from the US and neighbouring countries Bangladesh and Nepal, a private industry survey showed. </p>.<p>Purchasing Managers' Index (PMI) for manufacturing declined to 57.7 in July from 57.8 in the previous month, as per the survey conducted by rating agency S&P Global. July manufacturing PMI is the lowest in three months. The manufacturing PMI had hit a 31-month high of 58.7 in May.</p>.<p>Despite the decline, the data indicate healthy expansion in the manufacturing sector. The PMI print above 50 indicates growth in the sector while below 50 shows contraction. Manufacturing PMI has been above 50 mark for the past over two years.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/india-should-prepare-its-exporters-to-deal-with-compliance-norms-of-eus-deforestation-regulation-report-1242838.html">'India should prepare its exporters to deal with compliance norms of EU's deforestation regulation': Report</a></strong></p>.<p>“All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world,” said Andrew Harker, Economics Director at S&P Global Market Intelligence.</p>.<p>Manufacturing output has increased continuously on a monthly basis since July 2021. “The latest rise was substantial, albeit the softest in three months,” the global rating agency noted in the report.</p>.<p>Growth in new export business picked up to the fastest since last November. Respondents noted increases in new orders from customers in the US and neighbouring countries such as Bangladesh and Nepal, it added.</p>.<p>Manufacturing companies have ramped up hiring in recent months. Firms responded to greater workloads by taking on extra staff. The pace of job creation in July was broadly in line with those seen in May and June.</p>.<p>“Pressure continued to come on capacity, prompting firms to expand employment solidly again, a trend that is likely to continue in the months ahead should demand remain strong,” said Harker.</p>.<p>Meanwhile, the rate of input cost inflation jumped to a nine-month high in July. The firms that participated in the survey reported higher costs for raw materials, in particular cotton. These higher prices for raw materials, plus rising labour costs, led firms to increase their selling prices.</p>.<p>“In a reversal from recent trends, input price inflation accelerated at a faster pace in July, rising to a nine-month high. This was largely due to increases in raw materials and labour costs,” said Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays.</p>.<p>“Firms passed these on to selling prices, but output-price inflation was relatively steady. Thus, pricing power for manufacturing firms moderated last month,” Bajoria added. </p>
<p>India’s manufacturing activities growth eased to a three-month low in July due to lower expansion in output and new orders even though exports business picked up on the back of new orders from the US and neighbouring countries Bangladesh and Nepal, a private industry survey showed. </p>.<p>Purchasing Managers' Index (PMI) for manufacturing declined to 57.7 in July from 57.8 in the previous month, as per the survey conducted by rating agency S&P Global. July manufacturing PMI is the lowest in three months. The manufacturing PMI had hit a 31-month high of 58.7 in May.</p>.<p>Despite the decline, the data indicate healthy expansion in the manufacturing sector. The PMI print above 50 indicates growth in the sector while below 50 shows contraction. Manufacturing PMI has been above 50 mark for the past over two years.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/india-should-prepare-its-exporters-to-deal-with-compliance-norms-of-eus-deforestation-regulation-report-1242838.html">'India should prepare its exporters to deal with compliance norms of EU's deforestation regulation': Report</a></strong></p>.<p>“All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world,” said Andrew Harker, Economics Director at S&P Global Market Intelligence.</p>.<p>Manufacturing output has increased continuously on a monthly basis since July 2021. “The latest rise was substantial, albeit the softest in three months,” the global rating agency noted in the report.</p>.<p>Growth in new export business picked up to the fastest since last November. Respondents noted increases in new orders from customers in the US and neighbouring countries such as Bangladesh and Nepal, it added.</p>.<p>Manufacturing companies have ramped up hiring in recent months. Firms responded to greater workloads by taking on extra staff. The pace of job creation in July was broadly in line with those seen in May and June.</p>.<p>“Pressure continued to come on capacity, prompting firms to expand employment solidly again, a trend that is likely to continue in the months ahead should demand remain strong,” said Harker.</p>.<p>Meanwhile, the rate of input cost inflation jumped to a nine-month high in July. The firms that participated in the survey reported higher costs for raw materials, in particular cotton. These higher prices for raw materials, plus rising labour costs, led firms to increase their selling prices.</p>.<p>“In a reversal from recent trends, input price inflation accelerated at a faster pace in July, rising to a nine-month high. This was largely due to increases in raw materials and labour costs,” said Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays.</p>.<p>“Firms passed these on to selling prices, but output-price inflation was relatively steady. Thus, pricing power for manufacturing firms moderated last month,” Bajoria added. </p>