Manufacturing sector grew at the fastest pace in 13 months in August as new orders surged while input and output costs were subdued, giving room for RBI to cut interest rates.
Showing “sold improvement“, Nikkei India manufacturing PMI went up to 52.6 last month, from 51.8 in July . A reading above 50 indicates expansion. A sharp upturn in new business inflows, which expanded at the fastest pace since December 2014, among other factors, pushed the Purchasing Managers' Index (PMI) higher in August.
Consumer goods producers led the increase although solid growth was also seen in the intermediate and capital goods categories.