According to a survey released, India’s manufacturing output grew at its slowest pace in the two years in October, indicating continued weakness in industrial activity in Asia’s third-largest economy.
The market information supplier revealed in a statement that the seasonally adjusted IHS Markit India manufacturing purchasing managers’ index (PMI), based on a survey of 400 producers, fell from 51.4 in September to a two-year low of 50.6 in October, narrowly avoiding slipping into contraction.
As per reports, a figure above 50 indicates expansion and one below 50 indicates contraction. The cooling of manufacturing conditions in India continued in October, with both factory orders and production rising at their weakest rates in two years.
Subsequently, job creation fell to a six-month low, while companies were reluctant to hold excess stock and lowered input buying in response, said the statement. In fact, business confidence also slipped to its lowest level in over two-and-a-half years, while in another sign of subdued growth conditions, input costs declined for the first time in over four years, it added.
As per a principal economist, PMI data for October showed a continuation of manufacturing sector weakness, with sales growth softening to the slowest in two years. The economist quoted, “weakening demand had a domino effect on the manufacturing industry, knocking down rates of increase in production, employment and business sentiment.”