Fresh order inflows at 4-year low in Oct-Dec 2012

Fresh order inflows at 4-year low in Oct-Dec 2012
Fresh order inflows at Indian companies, which indicate the health of economy and investment activity, have slipped to 4-year low in the quarter ended December 31, dragged down by sectors like power, capital goods, construction and infrastructure, said a media report.

According to a leading financial media agency, the new orders for companies in sectors like infrastructure and construction fell as much as 32 per cent at Rs 37,371 crore, the lowest since June 2009.

Sources said that the situation has been aggravated by slowdown in new projects while existing ones got stalled as companies try to save cash due to an uncertain outlook.

This has also reflected in the performance of such companies on bourses. The data showed that BSE Capital Goods index fell around 11 per cent so far this year as compared to 1 per cent fall in BSE Sensex.

Infrastructure sector has also been hit by government reducing its spending over the past few months as it tries to improve India's finances while preventing the growth from falling below 5 per cent.

Read more about: manufacturing
Story first published: Monday, February 25, 2013, 13:30 [IST]
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