India’s manufacturing output fell to four-month low in June; level of confidence at three-month low: Report New Delhi, July 3 (KNN) India’s manufacturing activity slowed to a four month low in June despite an increase in orders from abroad, Nikkei India Manufacturing Purchasing Manager’s Index (PMI) showed.
A reading above 50 on the index indicates expansion.
Output across India’s manufacturing economy rose for the sixth month in a row during June, which survey participants linked to ongoing increases in client demand.
As was the case for new orders, production expanded in the consumer and capital goods categories, but fell at producers of intermediate goods.
This followed a reduction in new work from abroad in May.
Input costs continued to increase, with anecdotal evidence pointing to higher prices for chemicals, food, plastics and rubber.
However, the rate of inflation was modest and the weakest since August 2016.
Looking ahead, manufacturers in India forecast output growth in the coming 12 months, with optimism supported by new developments and anticipations of higher demand stemming from lower tax rates.
However, some companies mentioned that the implementation of the GST bill will have a negative impact on their businesses, added the PMI report.
As such, overall optimism slipped to a three-month low,” Lima commented.