Higher demand pushes hiring up as manufacturing PMI touches 58.3 in June

In June, the Indian manufacturing sector showed a notable recovery, with the Purchasing Managers Index (PMI) rising to 58.3 from 57.5 in May, indicating strong growth. Buoyant demand conditions drove expansions in new orders, output, and buying levels, leading to a resurgence in the industry. Companies also ramped up employment at the fastest rate in over 19 years, reflecting the sector's robust performance. Despite high-cost pressures, firms were able to increase selling prices significantly, marking the strongest price hikes since May 2022.

The consumer goods industry demonstrated particularly strong performance, while increases were also observed in the intermediate and investment goods categories. June witnessed a substantial expansion in sales for Indian manufacturers, fuelled by strong underlying demand, increased export volumes, and effective advertising strategies. This growth momentum was supported by continuous rises in new order intakes, prompting companies to intensify their recruitment efforts. The sector's outlook remains positive, although the future output index slightly decreased to a three-month low, indicating a cautious optimism tempered by lingering challenges.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.