Manufacturing activities expanded in July’ 21

Nikkei’s manufacturing purchasing manager’s Index (PMI) reached to 55.3 in July’ 2021, up from 48.1 during June’ 2021. India’s manufacturing activities have experienced highest growth in July, overcoming the contraction in sector during June, as the Indian states curbed the restriction imposed due to second wave of COVID-19.

The monthly index shows expansion in output, exports, quantity of purchases, new orders and input stocks in July. Furthermore, employment also increased marginally, putting an end to continuous fall in employment over the past 15 months.

IHS markit, the company which releases PMI, stated, “Strengthening international demand contributed to the uptick in total order books. New export orders expanded markedly in July, following a moderate contraction in June.” Commenting on the increase in cost of inputs, the firm said, “Output charges rose only slightly, however, as several companies absorbed additional cost burdens amid efforts to boost sales.”

Pollyanna De Lima, Associate director at IHS Markit, opined that although employment rose in July, the sustainability of this trend is doubtful due to rising cost for firms and spare capacity of firms.