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Indian manufacturing sector growth eases to 52.1 in June

01 Jul 2019 Evaluate

After hitting three-month high in May, Indian manufacturing sector lost growth momentum in the month of June, on the back of softer increase in output. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 52.1 in June from 52.7 in May.

The report found that a softer increase in new work intakes translated into slower rises in output and employment. The upturn in total sales was the second slowest in nine months, ahead of that noted in April. Further, growth of new export orders also showed signs of weakness, easing to the second-slowest in over a year.

Besides, suppliers comfortably accommodated for the uptick in input buying growth, as signaled by an overall reduction in delivery times. Subsequently, input stocks rose further. On price front, only a moderate increase in input costs reported, which in turn supported another round of selling charges discounting.

Manufacturers remained upbeat about growth prospects in June, with marketing initiatives, stable political conditions and forecasts of a pick-up in demand underpinning positive sentiment. However, the degree of optimism weakened slightly from that recorded in May.

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