Production volumes surged at the fastest pace in nearly five years, underpinned by better alignment of supply with demand. New orders remained strong, sustaining the quickest expansion in nearly five years, with firms citing demand buoyancy and effective advertising. Sales and output growth was strongest in intermediate goods, followed by capital and consumer goods.
The international orders grew at a softer pace, the weakest in five months, though remained solid historically, with gains from Asia, Europe, the Middle East and the US. Manufacturers expanded purchases of raw materials and semi-finished goods, with buying activity hitting a 16-month high. Input and finished goods inventories both rose, ending an eight-month depletion trend, S&P Global said in a press release.
Employment increased for the 18th consecutive month, though at the slowest pace since November 2024. Optimism improved, recovering from July’s three-year low, with firms expecting output growth over the next 12 months.
Input costs rose moderately, while selling prices climbed at the sharpest rate in three months, reflecting demand strength. Capacity pressures remained subdued, with lead times improving further.
The upbeat August data underscored resilience in India’s manufacturing sector, signalling sustained momentum in industrial activity midway through the fiscal.
“India’s manufacturing PMI hit another new high in August, driven by a rapid expansion in production. The increase of US tariff on Indian goods to 50 per cent might have contributed to the slight easing in new export orders growth, as American buyers refrain from placing orders in the midst of tariff uncertainty. Overall orders growth, on the other hand, held up much better, suggesting that domestic orders remained robust, helping to cushion against tariff-related drag on the economy. Manufacturers’ continued optimism for future output is a positive sign,” said Pranjul Bhandari, chief India economist at HSBC.
ALCHEMPro News Desk (SG)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
