Manufacturers indicated that both the domestic and external markets had been sources of incoming new work. Indeed, August saw new export orders expand at the quickest rate in one year.

Subsequently, companies continued to raise output in August, with growth picking up to the strongest in one year. Consumer goods was, once again, the strongest-performing sector on this front.

Greater output requirements led some manufacturers to hire additional workers in August, but the overall rate of job creation remained marginal as the vast majority of firms left workforce numbers unchanged.

Buying levels were also raised, as companies attempted to build inventory levels. The upturn in purchasing activity was moderate, but the rate of growth was at a 12-month high.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at IHS Markit and author of the report, said: "Manufacturing PMI data show that the positive momentum seen at the beginning of the second semester has been carried over into August, with expansion rates for new work, buying levels and production accelerating further. Moreover, the sector's growth dynamics for the near-term are encouraging as companies will likely continue their efforts to replenish stocks."

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