India manufacturing PMI up for 4th straight week

India's manufacturing sector continued its recovery process with output growing for a fourth consecutive month in July, spurred by a series of fiscal and monetary stimulus measures announced over the past few months. Markit Economics’ Purchasing Managers’ index (PMI) stood at 55.3 in July, according to a report released today. In June, the Indian manufacturing PMI stood at 55.34. It was the fourth monthly reading above 50, which indicates factory production increased. Before that, it shrank for five months through the end of March, hitting a trough of 44.37 in December.
Growth in India's manufacturing activity held steady in July amid robust local demand and a slight rebound in exports, but intense competition curbed companies' pricing power even as raw material costs jumped, the Markit survey showed. "The domestic market remained the primary impetus to growth, although the export market also played a part as its recovery gained pace," said Gemma Wallace, an economist at Markit Economics. The new orders index rose to 59.75, its highest in nine months, from 58.56 in June. Wallace also said that there was evidence that capacity pressures have started to building up.