India?s manufacturing sector expanded for the 17th successive month in August, although at a slightly slower pace than in July, supported by strength in new orders.
The HSBC Markit Purchasing Managers? Index, based on surveys of 500 companies in Asia?s third-largest economy, fell to 57.25 in August from 57.6 in July, but remained well above the 50 mark that divides growth from contraction.
The new orders? index was 61.99, down slightly from 62.82 in July.
?India?s economy shows no signs of cooling off. Output continues to expand at a brisk pace and new orders remain in solid expansionary territory, signalling further growth ahead,? Frederic Neumann, co-head of Asian Economics Research at HSBC, said in a statement.
The economy grew in the April-June quarter 8.8% from a year earlier, data showed on Tuesday, its fastest pace in nearly three years.
?But growth comes at a price: inflationary pressures, already a concern, continue to simmer, with input prices rising and output price pressures only easing marginally,? Neumann said.
The survey showed that output prices rose at their slowest rate in 10 months, while the input price index rose for the second consecutive month. Wholesale inflation, the most closely watched measure of price pressures, slowed in July to just under 10% following five months in double-digits.
The central bank has raised its key policy rates four times this year as part of efforts to tame inflation.
India and Russia continue to power ahead, cheering investors in the face of signs that sputtering US recovery was cooling global demand.
Factories in Russia ? part the BRIC quartet of new economic powers alongside China, India and Brazil ? also cranked up their output, expanding at their fastest rate in 28 months largely thanks to the strength of domestic demand.
Fears that recovery in the US was petering out and could stall the global upturn led by export-driven Asian economies have haunted markets for weeks pushing the global stock index down more than 3% last month. Trade data from South Korea, the world?s ninth largest exporter showed its shipments abroad hit a five-month low last month.