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New orders in the manufacturing sector declined marginally in June, the first such decline in almost 51 months, as a result of lower demand, HSBC’s Purchasing Managers’ Index indicated.
For June, India’s manufacturing activity, however, rose to 50.3 from 50.1 in May. A figure above 50 indicates expansion.
Tougher economic conditions and persistent power cuts were the main reasons behind the slow manufacturing output growth, the report said.
“Manufacturing activity was broadly flat in June…At the same time, employment firmed and stocks of finished goods rose. Despite the moderate pace of growth, output prices picked up slightly and input prices rose more notably, partly in response to the depreciation of rupee,” said Leif Eskesen, Chief Economist for India & Asean at HSBC.
Export business, however, rose at the sharpest rate since January as demand from key foreign clients strengthened, the report added.
>satyanarayan.iyer@thehindu.co.in
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