Contact Your Financial Adviser Money Making MC
4
October 2016
India's manufacturing activity lost some
momentum in September due to softer increase in new business inflows, a key
macro-economic data showed on Monday. The
Total Investment & Insurance Solutions
However, the data report pointed out
that manufacturing business conditions improved for the ninth straight month,
albeit rather slowly. The Total
Investment & Insurance Solutions
The Nikkei Markit India Manufacturing
Purchasing Managers' Index (PMI) -- a composite indicator of manufacturing
performance -- declined to 52.1 last month from 52.6 in August.
An index reading of above 50 indicates
an overall increase in economic activity, and below 50 an overall decrease. The Total Investment & Insurance
Solutions
"The Indian manufacturing industry
lost momentum in September, as growth of new orders eased from August's
20-month high," Pollyanna De Lima, Economist at IHS Markit and author of
the report was quoted in a statement as saying. The Total Investment & Insurance Solutions
"However, output is still rising at
a decent clip and the sector looks likely to have delivered a stronger
contribution to GDP growth in Q2 FY2016/17, with the quarterly reading for the
PMI's Output Index up from 51.4 during April-June to 53.6." The Total Investment & Insurance
Solutions
According to the report, India's
manufacturing upturn was sustained in September, as a further increase in order
books underpinned growth of output and purchasing activity.
The PMI report said that the sector
derived strength from external demand, with firms noting the strongest rise in
new export orders since July 2015. The
Total Investment & Insurance Solutions
Nevertheless, the manufacturing
activity's expansion eased. The latest figures showed an intensification of
inflationary pressures with both input costs and output charges recorded
increase.
"Amid reports of orders being
fulfilled directly from stocks, post-production inventories fell again in
September. Conversely, holdings of raw materials and semi-manufactured goods
rose for the tenth successive month," the statement said. The Total Investment & Insurance
Solutions
The PMI data revealed that average
purchase costs increased at a faster pace in September, but one that was weak
compared to its long-run trend. The main item reported to be up in price was
steel.
The data implied that manufacturers
attempted to protect profit margins as output
charges were raised further. Despite
ticking higher, the rate of inflation was historically muted.
"Although inflation rates edged
higher, these remain weak by historical standards and indicate that we may
still see the RBI loosening monetary policy in 2016," Pollyanna De Lima
said.
The Nikkei India Manufacturing PMI is
based on data compiled from monthly replies to questionnaires sent to
purchasing executives in over 400 industrial companies. The Total Investment & Insurance
Solutions
No comments:
Post a Comment