While most other nations across Asia disappointed, there was one bright spot in Asian manufacturing PMI releases on Monday – the performance of India.
The latest Nikkei-Markit PMI gauge rose to 52.7 in July, beating June’s 51.3 level and also expectations for a decline to 51.0.
It was the highest level since January 2015.
In PMI reports, a reading above 50 indicates activity levels are expanding rather than contracting.
Here’s Markit on encouraging performance witnessed over the month.
“July saw manufacturing business conditions across India improve further. A solid and accelerated increase in new orders led firms to raise production accordingly. Moreover, growth of both domestic and foreign demand were reported, with new business from abroad rising at the quickest rate since February. On the price front, a marginal rise in costs was registered, whereas average selling prices were unchanged over the month”.
The Reserve Bank of India will announce its August monetary policy decision at 3.30pm AEST Tuesday. While not universal, most market participants expect the bank will leave its key repo rate unchanged at 7.25%.