India's Manufacturing Sector Powers Ahead, Longest Expansionary Streak in 11 Years
Robust Demand Boasts Strong Growth
India's manufacturing sector recorded robust growth in July 2022, extending its impressive expansionary streak to 11 consecutive months. The HSBC final India Manufacturing Purchasing Managers Index (PMI), compiled by SP Global, stood at 58.1, indicating a solid performance despite elevated cost pressures.
Sustained Expansionary Phase
Longest Streak in Over a Decade
The manufacturing PMI has remained above the 50-mark, which separates growth from contraction, since July 2021. This marks the longest uninterrupted period of expansion in the Indian manufacturing sector in 11 years.
Global Contrasts
Japan's Factory Activity Dwindles
In contrast to India's positive manufacturing outlook, Japan's factory activity contracted slightly in July. Output and new orders fell, while businesses faced continued pressure from higher input prices.
Sustained Indian Demand
India's manufacturing sector continues to benefit from elevated demand, which has provided a strong foundation for growth. A recent survey suggests that this robust demand is expected to continue in the coming months, further supporting the sector's expansionary trajectory.
Conclusion
India's manufacturing sector remains resilient, demonstrating steady growth despite rising costs. The sustained expansionary streak, coupled with continued demand, highlights the sector's strength and its importance in driving the Indian economy forward.
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