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Manufacturing PMI at two-year low in October: Survey

Updated: Nov 01, 2019 07:29:44am
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Manufacturing PMI at two-year low in October: Survey

New Delhi, Nov 1 (KNN) Manufacturing activity in the country hit a two-year low in October as factory orders and production rose at the weakest rates, a monthly survey said on Friday.

According to survey, the headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to a two-year low of 50.6 in October from 51.4 in September. This indicates only a marginal improvement in the health of the manufacturing industry.

As per the PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

"Subsequently, job creation softened to a six-month low, while companies were reluctant to hold excess stock and lowered input buying in response," it noted.

The PMI data for October showed a continuation of manufacturing sector weakness in India, "with sales growth softening to the slowest in two years", said Pollyanna De Lima, Principal Economist at IHS Markit.

"Weakening demand had a domino effect in the manufacturing industry, knocking down rates of increase in production, employment and business sentiment," Lima said.

With quantities of purchases contracting for the third month in a row, Lima pointed out that input costs fell for the first time in over four years during October.

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