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India’s Manufacturing Sector Expands At Steady Pace

India’s manufacturing activity logged a sustained expansion in September, underpinned by increases in both output and new orders, survey figures from IHS Markit showed Tuesday.

The Nikkei manufacturing Purchasing Managers’ Index, or PMI, came in at 51.2 in September, unchanged from August. However, any score above 50 indicates expansion in the sector.

Manufacturing sector remained in growth zone for the second straight month.

Both output and new orders continued to rise in September, but the rates of growth eased slightly from August.

Reflecting greater inflows of new work, Indian manufacturers raised their staffing levels, and at the fastest pace since October 2012

On the price front, cost pressures intensified in September, driven by higher steel and petroleum prices and GST effects.

Nonetheless, due to competitive conditions, firms were only able to increase output charges at a marginal pace.

“The lingering effects of recent economic shocks continue to cast a shadow on economic growth as IHS Markit downgrades its real GDP growth forecast to 6.8 percent for fiscal year 2017/18,” Aashna Dodhia, Economist at IHS Markit, said.

“It will be interesting to see if India’s new economic advisory council will bolster its path to recovery.”
Source: RTT News

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