India’s flash Purchasing Managers’ Index (PMI) for July 2024 indicates strong growth in business activity, driven by robust demand in both the manufacturing and services sectors12. The PMI rose to 61.4, marking the highest level in three months.
However, this growth comes with inflationary pressures. The survey noted that both input costs and output charges have increased significantly, with prices charged rising at the steepest pace since February 2013. This has raised concerns about the potential impact on the Reserve Bank of India’s interest rate outlook, as it aims to bring inflation back to its 4% medium-term target.
India flash PMI shows manufacturing and service sectors rocketing higher as composite output index jumps but price increases are flashing warning signs; input inflation is picking up and charge inflation hit highest level since Fes '13; was this real growth or money printing? pic.twitter.com/2LuRgBVzu9
— E.J. Antoni, Ph.D. (@RealEJAntoni) July 25, 2024
Sources:
indianexpress.com/article/business/india-business-growth-three-month-july-pmi-9472320/
www.pmi.spglobal.com/Public/Home/PressRelease/375f0302f8cd4d368eef537b6db44506