Tariff pressure and weaker GST gains see India’s Nov manufacturing PMI hit a nine-month low due to softer demand.
India’s manufacturing sector development decelerated in November, according to S&P Global, as the PMI dipped to 56.6 from the 59.2 reported in the previous month. The study suggests that operating conditions have improved at their weakest pace since February, reaching a nine-month low.
The index remained much over the neutral threshold, and overall growth proceeded at a strong rate. A rating above 50 suggests economic expansion; on the other hand, a reading below 50 denotes contraction in the building or manufacturing industries. A exact value of 50 indicates stasis.
Both output and total new orders continued to expand at rates surpassing the trend, however this growth was the slowest seen over the last nine months. In certain areas, growth was bolstered by increased firm activity and efficiency gains, but in other others, low demand limited overall output levels.
Manufacturers restricted both employment levels and purchasing activities, despite new orders continuing to report moderate growth. This was the poorest job growth in over two years, despite the fact that employment has been increasing more slowly for 21 consecutive months. Cost pressures remained subdued in November. Because input prices increased at their slowest rate since February, businesses were only able to slightly raise their selling prices. Consequently, the rise in output charges plummeted to its lowest level in eight months.
Though optimism fell to its lowest point in nearly three and a half years, businesses are nevertheless hopeful about a rise in production the next year. S&P believes that worries about a competitive environment, specifically competition from overseas enterprises, were the source of the decreased predictions.
SOURCE – BUSINESS STANDARD
