August 2, 2021
Bangalore (Reuters) -Indian factory activity recovered in July as domestic and international demand surged, urging companies to create new jobs for the first time since the outbreak of the pandemic, a private sector survey showed on Monday. ..
The Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, surged from 48.1 in June last month to 55.3, well above the 50 levels that separate growth and contraction.
Polyanna Delima, Associate Director of Economics at IHS, said: Mark it.
India tackled the catastrophic second wave of coronavirus infections in April and May, but many restrictions were relaxed due to the reduced number of cases.
The country still reports more than 40,000 cases per day, with a total of about 31.6 million infections, but the resumption of the economy has boosted demand and sales, resulting in a surge in production.
New export orders have grown at the fastest pace since April.
Employment increased for the first time since March 2020, breaking the 15-month unemployment chain. However, the pace of employment is modest, indicating that the employment crisis remains clear.
According to a recent Reuters poll, the third-largest economic growth in Asia could lose momentum, putting the greatest risk on predicting that new coronavirus variants are already weakening, and rising inflation. It was expected.
Due to a shortage of raw materials and soaring fares, the pace for seven months was slow, but input costs increased.
Although input costs have risen, production prices have risen only slightly, suggesting that companies are absorbing the extra cost burden to increase sales and remain competitive.
“But companies’ cost burdens continue to increase and signs of surplus capacity remain clear, so this trend cannot be expected to continue in the coming months,” DeLima added.
The Reserve Bank of India predicts that inflation will remain within this year’s target range of 2% to 6% and is not expected to raise interest rates until next year.
(Report by Shaloo Shrivastava; edited by Kim Coghill)
Growth in Indian factories recovered in July and employment resumed 15 months later.
Source link Growth in Indian factories recovered in July and employment resumed 15 months later.