India's factory growth hits 14-month high on exports surge, PMI shows
The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, climbed to 58.4 in June from May's 57.6 and in line with a preliminary estimate released last week.
The PMI threshold of 50.0 separates growth from contraction in activity.
'Robust end-demand fuelled expansions in output, new orders, and job creation,' said Pranjul Bhandari, chief India economist at HSBC.
Factory output grew at its fastest pace since April last year, supported by strong demand.
Incoming new orders increased at the steepest rate in nearly a year, with international demand providing significant momentum.
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Export orders recorded the third-highest growth rate since data collection began in March 2005, with US markets frequently cited as a source of strength.
The latest positive readings come amid rising uncertainty from US tariffs as India's trade talks with the largest economy in the world have hit a roadblock ahead of the July 9 deadline due to disagreements on duties for auto components, steel and farm goods, according to government sources.
Strong demand prompted manufacturers to hire additional staff at an unprecedented pace - the fastest since the survey began over two decades ago.
Price pressures for manufacturers eased in June, with input cost inflation slowing to its lowest level in four months despite some increases in iron and steel prices. The moderation was significant when compared to historical trends.
At the same time, companies continued to raise their selling prices markedly - albeit at a softer pace than in the previous month - passing on expenses such as freight, labour and material costs to customers.
Business confidence remained positive but dipped slightly to an eight-month low as some manufacturers expressed concerns about competition, inflation and potential shifts in consumer preferences. REUTERS
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