India: Private-sector PMI rebounds in August
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit increased to 55.4 in August from 49.2 in July. As a result, the PMI jumped above the 50-threshold, indicating an expansion in business activity from the previous month.
The services PMI rose to 56.7 in August from 45.4 the month prior, as new orders and output increased robustly. That said, on the manufacturing side, the PMI fell to 52.3 in August from July’s 55.3, due to weaker increases in output, new orders, and broadly stagnant headcounts.
Commenting on the latest PMI data, Pollyanna De Lima, economics associate director at IHS Markit, said:
“The 12-month outlook for production remained positive, though confidence faded amid worries concerning the lasting scars of the pandemic and the adverse impact of rising costs on companies’ finances parallel to a lack of pricing power.”