NEW DELHI: Manufacturing activity continued to gather momentum in Aug with robust new orders and an increase in production, which rose at its fastest pace since late 2020, a survey showed on Monday. Up from 59.1 in July to 59.3 in Aug, the HSBC India Manufacturing Purchasing Managers’ Index (PMI) – a single-figure indicator of sector performance – indicated the fastest improvement in operating conditions for 17-and-a-half years, the data showed. The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to a questionnaire sent to 400 manufacturing companies.Companies stepped up the pace at which additional materials were bought, and more jobs were created, partly reflecting positive expectations regarding the outlook for the key sector. “India’s manufacturing PMI hit another new high in Aug, driven by a rapid expansion in production. “The increase of US tariff on Indian goods to 50% 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,” said Pranjul Bhandari, the chief India economist at HSBC.
