Mumbai, Sept. 1 -- Indian manufacturing growth gained further momentum in August, with ongoing improvements in demand continuing to underpin robust increases in factory orders and production.

Companies upped the pace at which additional materials were bought, and more jobs were created, partly reflecting positive expectations regarding the outlook. Input stocks rose again, while finished goods inventories expanded for the first time in nine months.

Meanwhile, subdued cost pressures compared with a marked upturn in selling charges. Up from 59.1 in July to 59.3 in August, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) indicated the fastest improvement in operating conditions for 17-and-a-half years.

The...