New Delhi, Dec 1 (KNN) India’s factory output fell for the fourth consecutive survey period and hit a 25-month low in November at 50.3 The reading was 50.7 in October, according to the Nikkei India Manufacturing Purchasing Managers' Index, or PMI.

A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

The latest PMI data showed slower increases in incoming new business and output, while subdued demand growth led firms to keep workforce numbers broadly unchanged.

Meanwhile, input cost inflation accelerated to the strongest since May, whereas factory gate prices were raised at a weaker rate that was marginal overall.

Indian manufacturers indicated that new business inflows rose in November, marking a 25-month sequence of expansion. That said, the rate of growth was the weakest over this period. There were reports that growth of new work was hampered by subdued domestic demand and competitive pressures. Mirroring the trend for new orders, production increased at the softest pace in the current 25-month sequence of expansion.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said, “Signs of the sector slowing have been building up, as growth of both new orders and output has eased in each of the past four months. The disappointing news is accompanied by a stagnant labour market in the sector.”
 
Digging deeper into detail, the intermediate goods sub-sector drove the deceleration in growth. New business inflows and output in this category fell for the first time since December 2013. While investment goods producers saw a rebound in November, the consumer goods sector remained the bright spot.
 
“The slowdown in growth combined with weak inflationary pressures support further rate cuts. Input cost and output charge inflation as measured by the survey were much lower than their respective long-run averages,” Lima said. (KNN Bureau)