Manufacturing Growth Slows To 20-Month Low: Nikkei India

Posting a 22-month low of 50.7 in October, (September: 51.2), the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - was indicative of a weaker improvement in business conditions across the sector. Nonetheless, the PMI has recorded above the crucial 50.0 threshold in each month since November 2013.

"Business conditions across the Indian manufacturing economy improved further in October. That said, the latest PMI dataset highlighted weaker growth of both output and new orders. Encouragingly, companies added to their workforces for the first time since January and continued to increase buying levels.

On the price front, both input costs and factory gate charges rose, albeit at rates that were below their respective long-run averages," a release by Markit on behalf of Nikkei India Manufacturing stated.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said: "PMI data for October show a further loss of growth momentum across the Indian manufacturing economy, with a slower rise in new business inflows resulting in a weaker expansion of output "Undeterred by tough economic conditions overall, firms took on extra staff in October. This, combined with a further drop in inventories of finished goods, suggests that production growth may rebound in coming months.

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Story first published: Monday, November 2, 2015, 14:53 [IST]

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