India: Manufacturing reaches 17-month high, but Services PMI edges down in July
August 5, 2014
The Markit manufacturing Purchasing Managers’ Index (PMI) increased from 51.5 in June to 53.0 in July. July’s reading represents the highest level since February 2013. The PMI index is now even further above the 50-threshold that separates expansion from contraction in business conditions in the manufacturing sector.
According to Markit, July’s print reflected that companies scaled-up production in response to strong domestic demand. However, Markit added that, “inflation continued to emerge, especially on the supply-side.”
The services PMI decreased in July, from 54.4 in June to 52.2. Despite July’s drop, the index remains above the 50-threshold. According to Markit, July’s print is, “indicative of a solid expansion in private sector activity.”