India: Economic conditions mixed in June
July 5, 2017
Activity in India’s manufacturing sector moderated in June, as water shortages and apprehensions over the government’s GST reform impacted activity. The manufacturing Purchasing Managers’ Index (PMI), elaborated by Nikkei and IHS Markit, fell from May’s 51.6 to 50.9. However, the manufacturing PMI still lies above the crucial 50-threshold that separates expansion from contraction.
Looking at the details, output grew at the softest pace since February driving the decline in the index. In addition, new orders expanded at a more moderate pace than in the previous month, while gains in employment and buying levels were soft overall.
Meanwhile, the Nikkei services PMI improved, rising from 52.2 in May to 53.1 in June. New business inflows and healthy output supported the service sector and firms took on extra staff in June.