Manufacturing PMI falls to 4-month low in June on sluggish output, foreign demand.
India’s manufacturing sector growth eased to a four-month low in June amid a slowdown in output and new orders as softer domestic consumption partly offset strong foreign demand, a business survey said.
In June, the PMI still held above the 50 level that separates growth from contraction for a sixth straight month.
Manufacturing growth slowed last month largely as domestic consumption cooled even as external demand remained solid.
New orders from external markets increased at a solid rate that was the most pronounced in eight months,” Lima said.
While the new tax system is expected by some firms to generate more business, others feel that GST will have a detrimental impact on orderbooks.
“As such, overall optimism slipped to a three-month low,” Lima said.
The manufacturing PMI averaged 51.7 during the April-June quarter, above the one seen in the previous quarter.
On the price front, there were signs of inflationary pressure losing speed as input costs rose to a lesser extent than in May.
Although manufacturers experienced reduced input cost pressures last month they did not pass on the benefits to customers.