Manufacturing activity rose to a three-month high in June on the back of new domestic and export orders, signalling signs of a revival in a sector that's key to overall growth. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 51.7 in June from 50.7 in May .The 50-point mark separates contraction from expansion.
The industrial sector has been under stress due to a string of factors including sluggish demand and slowing investment and the sector's data has displayed volatility.The core sector, spanning eight key infrastructure sectors, slowed in May after a sharp rebound in April. The manufacturing sector was supported by a stronger increase in new business inflows and companies raised production at a faster rate during June.The favourable operating environment encouraged businesses to purchase additional inputs, but was insufficient to generate jobs, the survey showed.
Incoming new work rose across the three broad areas of the manufacturing economy, as did production and the best-performing category was consumer goods, the survey showed. New export orders increased in June, offsetting the decline seen in May -the first in 32 months.
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