India`s manufacturing sector expansion slows to near five-year low in July
India’s manufacturing sector activity continued expansion but at its slowest pace in nearly five years in the month of July as growth in total sales, input purchasing and employment weakened. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased from 54.2 in June to 53.5 in July.
The survey report noted that the rate of growth in new orders was the second-weakest in over four years, as advertising and demand resilience supported sales, which were somewhat curbed by increasingly challenging market conditions and reduced client interest for key items. But there was a marked and accelerated upturn in external orders. Among many, firms noted gains from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand and the UAE.
Further, operating expenses rose further, especially for transportation, but the overall rate of cost inflation eased to a five-month low. Hence, output charges increased only moderately. Meanwhile, business sentiment strengthened from June's recent low, with firms signalling a positive outlook for demand, infrastructure projects and new client enquiries. Some businesses expected market conditions to improve and hoped their marketing initiatives would pay off.
