logo
India's core sector output grows 1.7% in June

India's core sector output grows 1.7% in June

Mint21-07-2025
New Delhi: The output of eight core infrastructure sectors, which account for two-fifths of India's industrial output, expanded by 1.7% in June, according to provisional data released on Monday by the commerce ministry.
The production of steel, cement and refinery products recorded positive growth in June, the ministry said.
Growth in May was revised to 1.2% from a provisional 0.7%, while it was 5% in June last year.
The Index of Eight Core Industries measures the combined and individual output of key industries – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
Core sector output contributes 40.27% to the Index of Industrial Production (IIP).
To be sure, India's industrial production grew at 1.2% annually in May, its slowest pace in nine months, as manufacturing momentum weakened and mining and electricity output slipped into contraction, according to provisional data released last month by the statistics ministry.
The modest expansion of factory output signals the challenges facing the economy. June's data will be released at the end of the month.
India's manufacturing sector activity rose to a 14-month high in June on the back of expansion in output, new orders, and job creation, a private survey released earlier this month.
The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.4 in June, up from 57.6 in May. It was 58.2 in April and 58.1 in March.
India's manufacturing PMI was 56.3 in February and 57.7 in January. A reading above 50 indicates expansion.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China factory activity shrinks in July, S&P index dips below 50 mark
China factory activity shrinks in July, S&P index dips below 50 mark

Business Standard

time24 minutes ago

  • Business Standard

China factory activity shrinks in July, S&P index dips below 50 mark

China's manufacturing activity unexpectedly contracted in July from a month ago, according to a private survey, adding to worrying signs about the economy's momentum in the period ahead. The results of the private survey were in line with the official reading released Thursday, which showed factory activity deteriorated at the worst pace in three months. The National Bureau of Statistics blamed the deterioration on disruptions caused by high temperatures, heavy rain and flooding in some regions. Following solid economic growth in the first half of 2025, China may see weakening momentum going forward as tariff front-running by exporters wanes. Consumer sentiment remains sluggish despite the help from government subsidies, which are expected to have a diminishing impact due to a high base of comparison in late 2024. 'The latest survey indicated that manufacturing production fell for only the second time since October 2023,' Jingyi Pan, economics associate director at S&P Global, said in the statement. 'Demand from overseas remained subdued on the back of global trade uncertainty.' New export orders contracted for a fourth straight month and at a faster pace than in June, according to the survey. While input prices increased for the first time in five months, firms weren't able to pass on their rising costs to customers as they lowered selling prices again, it showed. The results of the private survey have tended to be stronger than those from the official poll over the previous year as exports stayed strong. The two surveys cover different sample sizes, locations and business types, with the private poll focusing on small and export-oriented firms. The private PMI is no longer named after Caixin after the media group ended its sponsorship last month.

Market drop in early trade; breadth positive
Market drop in early trade; breadth positive

Business Standard

time24 minutes ago

  • Business Standard

Market drop in early trade; breadth positive

Domestic equity benchmarks opened with modest losses on Friday, weighed down by global trade concerns after the United States imposed steep tariffs on several key trade partners and reaffirmed a 25% import duty on Indian goods. The Nifty traded below the 24,700 level. Pharma, metal and IT shares corrected, while FMCG and media shares advanced. At 09:30 IST, the barometer index, the S&P BSE Sensex declined 263.46 points or 0.32% to 80,922.12. The Nifty 50 index lost 77.10 points or 0.28% to 24,691.25. In the broader market, the S&P BSE Mid-Cap index slipped 0.34% and the S&P BSE Small-Cap index shed 0.02%. The market breadth was positive. On the BSE 1,756 shares rose and 1,182 shares fell. A total of 134 shares were unchanged. Foreign portfolio investors (FPIs) sold shares worth Rs 5,588.91 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,372.71 crore in the Indian equity market on 31 July 2025, provisional data showed. Stocks in Spotlight: Swiggy slipped 3.23% after the company reported consolidated net loss of Rs 1,197 crore in Q1 FY26 compared with net loss of Rs 606 crore in Q1 FY25. Revenue from operations jumped 53.97% YoY to Rs 4,961 crore in Q1 June 2025. Restaurant Brands Asia advanced 2.97% after the companys consolidated net loss narrowed to Rs 419.38 crore in Q1 FY26 compared with net loss of Rs 493.60 crore in Q1 FY25. Revenue from operations increased 7.89% YoY to Rs 697.72 crore during the quarter ended 30th June 2025. Coal India rose 0.54%. The companys consolidated net profit declined 20.19% to Rs 8,734.17 crore in Q1 FY26 compared with Rs 10,943.55 crore in Q1 FY25. Revenue from operations fell 5.39% YoY to Rs 35,482.19 crore in Q1 FY26. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 0.03% to 6.378 from the previous close of 6.376. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.4950 compared with its close of 87.6550 during the previous trading session. MCX Gold futures for 5 August 2025 settlement shed 0.19% to Rs 97,900. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 99.83. The United States 10-year bond yield gained 0.41% to 4.378. In the commodities market, Brent crude for August 2025 settlement added 13 cents or 0.18% to $71.83 a barrel. Global Markets: Asian markets traded lower on Friday after U.S. President Donald Trump announced sweeping new tariffs on American trading partners, citing trade imbalances and national security concerns. The decision, signed late Thursday, is set to go into effect on 7 August and covers a wide range of goods from 69 countries and the 27-member European Union. Countries facing the highest rates include Syria at 41 percent, Switzerland at 39 percent, Laos and Myanmar at 40 percent, Iraq and Serbia at 35 percent, and Libya and Algeria at 30 percent. Others like Taiwan, India, and Vietnam fall in the 20 to 25 percent range. The European Union reached a deal under which goods with existing duty rates above 15 percent are exempt, while others will see adjusted levies. For countries not listed, a default rate of 10 percent will apply. Meanwhile, Japans unemployment rate was unchanged at 2.5% in June, from the previous month, government data released Friday showed. There were 122 job openings for every 100 job seekers in June, lower than the 124 openings for every 100 job seekers in the previous month. Stocks on Wall Street closed lower on Thursday, with the S&P 500 posting its third consecutive losing session. The broad market index fell 0.37% to settle at 6,339.39, while the Nasdaq Composite edged down 0.03% to 21,122.45. The Dow Jones Industrial Average declined 330.30 points, or 0.74%, closing at 44,130.98.

Asia factory outlook at lowest since pandemic on Trump tariffs
Asia factory outlook at lowest since pandemic on Trump tariffs

Economic Times

time24 minutes ago

  • Economic Times

Asia factory outlook at lowest since pandemic on Trump tariffs

iStock Economies in the region are highly reliant on industrial production and exports, particularly to the US, and serve as a barometer for global trade activity and demand. Manufacturers across Southeast Asia turned the least optimistic about future growth since the depths of the pandemic amid Trump's long tariff rollout, even as activity improved last month. Confidence in future output across the region fell to the lowest since July 2020, according to S&P Global purchasing managers' index data published Friday. The pessimism comes even as overall output improved in July, as the headline index of activity rose for the first time since March to 50.1, just above the 50-line demarcating growth or contraction. That's after contracting in June the most in nearly four years Manufacturers across the region, which the world relies on for goods, have been whipsawed since early this year by White House trade policy. After unveiling in April some of the highest tariff rates in Asia, President Donald Trump has since set tariff rates of 10% to 40% for the region. Economies in the region are highly reliant on industrial production and exports, particularly to the US, and serve as a barometer for global trade activity and demand. There were other slight improvements in external demand, as new export orders contracted at a softer pace and output prices rose at a faster pace, indicating increased demand from abroad. 'Despite these emerging positive trends, the latest data also indicated a further erosion of confidence,' said Maryam Baluch, economist at S&P Global Market Intelligence. 'While an increase in output is anticipated, the growth rate is expected to remain subdued.'Meanwhile, overall activity in Japan and South Korea contracted for another month. The new orders, output and employment measures together account for three-quarters of the PMI index, and surveys are conducted in the second half of each month.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store