FACTORY WHIR SLOWS ON RISING INPUT COSTS
IHS MARKIT MANUFACTURING PMI PRINTS AT 52.3 IN AUGUST, DOWN FROM 55.3 IN JULY
India's manufacturing sector activities moderated in August, as business orders and production rose at softer rates due to the pandemic and rising input costs, a monthly survey said on Wednesday.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 52.3 in August, down from 55.3 in July, indicating a softer rate of growth that was subdued and below its long-run average.
The August PMI data pointed to an improvement in overall operating conditions for the second straight month. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.
"August saw a continuation of the Indian manufacturing sector recovery, but growth lost momentum as demand showed some signs of weakness due to the pandemic. Yet, factory orders and output rose across the consumer, intermediate and investment goods categories," Pollyanna De Lima, Economics Associate Director at IHS Markit, said.
A softer upturn in sales led companies to pause their hiring efforts, with business confidence dampened by concerns surrounding the damaging impact of COVID-19 on demand and firms' finances, the survey said.
"Uncertainty regarding growth prospects, spare capacity and efforts to keep a lid on expenses led to a hiring freeze in August, following the first upturn in employment for 16 months in July," Lima said.
August data pointed to back-toback increases in new export orders, but here too growth lost momentum. The pace of expansion was only marginal.