HSBC Purchasing Managers’ Index grows fastest in June

New Delhi: India’s manufacturing sector growth in June expanded at the fastest pace since February, supported by growing order flows, especially from overseas, an HSBC survey said on Tuesday.

The HSBC India Manufacturing Purchasing Managers’ Index (PMI), a measure of factory production, rose marginally from 51.4 in May to 51.5 in June as operating conditions improved for the eighth month in succession.

“Things are gradually improving in India’s manufacturing sector. Output picked up in June, supported by growing order flows, especially from overseas,” HSBC Co-Head of Asian Economic Research, Frederic Neumann, said.

Meanwhile, rating agency Fitch said India’s economic growth will accelerate to 5.5 per cent this fiscal and 6.5 per cent in the financial year 2016 due to the clear mandate received by the pro-reform Modi government.

“We have increased our GDP growth forecast for FY16 to 6.5 per cent from 6 per cent and project real GDP growth to pick up to 5.5 per cent in FY15,” it said.