Millennium Post

Manufacturing growth hit in Aug: survey

India's manufacturing sector witnessed the weakest growth rate in nine months in August because of shrinking export orders and disruptions caused by power failures, an HSBC survey said.  The HSBC India Manufacturing Purchasing Managers' Index - a measure of factory production - eased to 52.8 in August, from 52.9 in July. The index, however has remained above the 50 mark- below which it indicates contraction - for more than three years now.

‘The momentum in the manufacturing sector eased further on the back of weak external demand and output disruptions caused by the major power failures in early August,’ HSBC chief economist for India and ASEAN Leif Eskesen said.

On one hand, power cuts continued to hamper production and on the other, export orders witnessed the second consecutive monthly dip because of  ‘weaker international demand and unfavourable exchange rate conditions’, HSBC said. While input price rose at a slower pace, output inflation picked up due to higher import costs and taxes.
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