India's PMI Climbs To 55.0, Production Expands Sharply, Employment Picks Up

india pmi

Photo: Markit

India’s June manufacturing PMI came in at 55.0.This compares to 54.8 in May.

“Activity in the manufacturing sector kept up the pace in June with output, and employment expanding at a faster pace,” wrote HSBC economist Leif Eskesen.  “The latter helped slow the pace of growth in backlogs of work.”

In light of these numbers, the RBI does not have a strong case for further rate cuts, which could add to lingering inflation risks.

Key Points:

  • PMI at 55.0 indicates further improvement in health of manufacturing economy
  • Production expands sharply in June
  • Largest month-on-month increase in input prices since August 2011

Click Here For Our Complete Global PMI Scorecard >

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