Manufacturing sector growth eased for the second month running in July, with some moderation in output and new orders, although the pace of expansion remained healthy, a private business survey showed.

The Manufacturing Purchasing Managers’ Index, compiled by S&P Global, dipped to 57.7 from June’s 57.8.

Despite the fall, the Indian manufacturing sector maintained strong growth momentum at the start of the third quarter amid ongoing buoyant demand, the survey said.

The July PMI data pointed to an improvement in overall conditions for the 25th straight month. In PMI parlance, a print above 50 means expansion, while a score below 50 indicates contraction.

“The manufacturing sector showed little sign of losing growth in July as production lines continued to motor on the back of strong new order growth,” said Andrew Harker, economics director at S&P Global Market Intelligence.