Indian manufacturers stepped up production, with July's upturn being the most pronounced since March. The overall increase in output was led by consumer goods producers, although growth was also recorded in the intermediate goods category.

July data highlighted ongoing pressure on the capacity of Indian manufacturers, as outstanding business rose for the second month in succession.

Furthermore, the rate of backlog accumulation was the fastest in one-and-a-half years.

Despite this, hiring trends remained relatively muted. Only 1% of surveyed companies took on additional workers in July, while almost all the remaining respondents signalled no change in payroll numbers. Underpinned by stronger growth of new orders, businesses purchased additional inputs for use in the   production process. The rate of expansion climbed to an 11-month high. Subsequently, stocks of raw materials and semi-finished goods rose.

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