The country's government has suffered a major setback on the manufacturing front. S&P Global's Manufacturing Purchasing Managers' Index has reached its lowest level in 5 months. According to the report, there has been a slowdown in the manufacturing sector due to lack of new orders. However, despite inflationary pressure, confidence reached its highest level this year due to strong demand. According to the data, the PMI of manufacturing was 58.6 in the month of August which has fallen to 57.5 in September. Whereas the Reuters poll had estimated 58.1. This is the 27th consecutive month when the PMI was seen above the 50-mark.
New orders received from here
Poliana de Lima, economics associate director at S&P Global Market Intelligence, said India's manufacturing industry showed mild signs of a slowdown in September, mainly due to a decline in new orders. Even after that, there has been an increase in demand and production and companies have also received new orders from Asia, Europe, North Middle East. Despite the decline in the sub-index since August, new orders and output increased rapidly due to demand from both domestic and foreign sources. International demand has increased for the 18th consecutive month. This has increased optimism and business confidence has reached a 9-month high.
Employment index at 6 month high
High business confidence has also inspired companies to increase their workforce. The employment index was seen at its highest since November, which has remained above 50 for six months. There was a slight increase in input costs in September. However, there has been a decline in the prices of oil and aluminium. Despite strong demand, companies have had to increase their sales prices. Output charge index increased due to increase in labor cost.
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