Manufacturing PMI expands at quickest pace.

 India's manufacturing activity expanded at a quickest pace in eight months on the back of new business orders and outputs.

S&P Global India Manufacturing Purchasing Managers' Index (PMI) jumped to 56.4 in July from 53.9 in June. A value above 50 shows expansion. The survey said that the rise in growth was a result of strong demand and pick-up in sales.

New orders rose in July, recovering from the growth momentum which was lost in June. The international markets contributed to the upturn in total order books as new export orders rose at a moderate pace.

Even as the cost for raw materials continued to rise, the rate of inflation slipped to a nine month low. Purchasing activity growth marked higher in July and firms were successful in their efforts to obtain inputs amid a second consecufive improvement in supplier perfomance.

The survey also pointed that companies stepped up input purchasing and reported solid manufacturing activities but job creation remained subdued.