Factory output growth at four-month high in July

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Indian factory activity grew at its fastest pace in four months in July as export orders jumped, but prices remained muted, giving room to the central bank to ease policy further if needed, a private survey showed on Monday.

The Nikkei/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.8 in July from June’s 51.7, marking its seventh month above the 50 level that separates growth from contraction.

[Naveen Kumar Saini/Mint]
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The output and new orders sub-indexes both rose to their highest since March.

Also see: New export orders at six-month high in July, says Nikkei India PMI

The data also showed that British manufacturers slammed on the brakes after the Brexit vote and growth eased in the euro zone.

UK PMI was at 48.2 in July, down from 52.4 in June, the lowest level since February 2013, while factory PMI for the euro zone fell to 52.0 in July from 52.8.

For China, the Caixin China General Manufacturing PMI rose to 50.6 in July from 48.6 in June, the first expansion in 17 months.