Manufacturing activity in the country slowed to a 25-month low in November due to sluggish flow of orders and muted demand, highlighting the need for sustainable reform measures to boost growth.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 50.3 in November from the previous month's 50.7. The 50-point mark separates expansion from contraction.The PMI survey is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 300 industrial companies.
Another survey showed manufacturing activity in China slowed to a three-year low. China's National Bureau of Statistics' official Purchasing Managers' Index (PMI) hit 49.6 in November, its lowest since August 2012 and down from the previous month's 49.8.
The latest data, which is an advance indicator, is in contrast to the GDP data for the second quarter that showed the manufacturing sector grew a robust 9.3%. The core sector data spanning eight key infrastructure segments has also remained sluggish so far but there are signs of improvement as the government moves to remove the bottlenecks. Exports have also contracted for 11 consecutive months against the backdrop of a slowing global economy .
Economists said the PMI survey does not always correlate with industrial production and the latest data should not be seen as a signal of industrial slowdown.
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