A robust increase in production levels and easing of input price inflation failed to offset the continuing slowdown in the country's manufacturing sector growth, which hit a new low last month after its steady decline for the sixth month in a row.According to the Purchasing Manager's Index data for the month of March, which tracks the health of the country's manufacturing sector, compiled by ABN Amro and NTC Economics, the rate of growth eased to its lowest level since the survey began in April 2005.
The PMI registered a level of 53.0 in March, down from 53.6 in the previous month. Index readings above 50.0 signal expansion from the previous month and readings below 50.0 contraction.
However, despite a further drop in the growth rate, production levels in the Indian manufacturing sector recorded a robust increase, as firms reported expanding output in response to favourable market conditions.
The rate of growth of overall volumes of incoming new business fell further, although the rate of increase of new orders from abroad accelerated slightly.
Employment growth was maintained in the Indian manufacturing sector in the latest survey period, the survey found.
Levels of unfinished business remained unchanged from the previous month in March and input buying activity in the sector continued to increase but at a less marked rate.
Output and input price inflation both eased in the month, while manufacturers continued to report a robust rate of increase in their average costs, driven by price rise for fabric and various raw materials, the report said.
© Copyright 2007 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
|
Advertisement
Email this Article 
Print this Article