The growth of manufacturing activity in India falls to a minimum of 2 years in October: report
New Delhi, November 1 () Manufacturing activity in the country continued to weaken in October, with factory and production orders rising at the weakest rates in two years, a monthly survey said on Friday.
The IHS Markit India Manufacturing Purchasing Managers' Managers (PMI) index was seasonally adjusted to a two-year low of 50.6 in October from 51.4 in September.
This indicates only a marginal improvement in the health of the manufacturing industry, according to the survey.
In the PMI language, an impression above 50 means expansion, while a lower score indicates contraction.
According to the IHS Markit survey, the cooling of manufacturing sector conditions in India continued in October, with factory orders and production rising at the weakest rates for two years.
Subsequently, job creation softened to a minimum of six months, while companies were reluctant to maintain excess stocks and reduced the purchase of supplies in response, he said.
October PMI data showed a continuation of the weakness of the manufacturing sector in India, with sales growth softened to the slowest in two years, said Pollyanna De Lima, principal economist at IHS Markit.
The weakening of demand had a domino effect in the manufacturing industry, reducing rates of increase in production, employment and business sentiment, Lima said. With the amount of purchases contracted for the third month in a row, Lima said input costs fell for the first time in more than four years during October. RAM ANS ANS