Comments
The 2015-16 fiscal year has started with a slowdown in manufacturing, an HSBC survey has indicated.
The HSBC India Purchasing Managers’ Index (PMI) stood at 51.3 in April, down from 52.1 in March.
Commenting on the PMI, Pollyanna De Lima, Economist at Markit, the agency which compiles the data, said despite recording softer rates of expansion, the Indian manufacturing sector held its ground in April, benefiting from ongoing improvements in operating conditions.
A highlight of the latest survey was the strong external market, with the rise in new export business.
No job creation “However, we are yet to see growth lead to meaningful job creation, as the index measuring employment has shown little change to staff numbers since the beginning of 2014.
"On the price front, tariffs fell for the first time since May 2013, as firms responded to weaker cost inflation.
“Even with the slower pace of expansion, the goods-producing sector is on course to provide a boost to the overall economy,” she said.
The PMI is a measure of factory production and based on data compiled from monthly replies to questionnaires sent to purchasing executives in around 500 manufacturing companies.
An index above 50 shows expansion, while one below 50 indicates contraction.
Taking note of the manufacturing slowdown, Anis Chakravarty, Senior Director with Deloitte, said despite growth slowdown, higher output levels were seen in all the monitored goods categories, with the crucial capital goods segment recording the strongest growth and consumer durables recording the lowest, reflecting the fact that domestic demand was yet to pick up.
However, he felt, even as input prices paid by producers rose for the second consecutive month, average selling prices declined for the first time in almost two years highlighting the scope for further easing of monetary policy.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.