India’s manufacturing activity slows
NEW DELHI: Production growth of India’s manufacturing sector eased in March amid export decline, PMI survey report showed.
Accordingly, the headline seasonally adjusted IHS Markit India Manufacturing PMI grew at the slowest rate for four months in March, hampered by softer rises in both output and new business.
Contributing to the downward momentum was a record decline in new export orders, with international demand faltering amid the global coronavirus outbreak. Consequently, the seasonally adjusted PMI reading rose to 51.8 in March to 54.5 in February.
An index reading of above 50 indicates overall increase compared with the previous month, and below 50, the decrease.
“The Indian manufacturing sector remained relatively sheltered from the negative impact of the global coronavirus outbreak in March, however, there were pockets of disruption and a clear onset of fear among firms,” said Eliot Kerr, Economist at IHS Markit.
“New orders and output both grew at softer rates, but those readings were relatively tame compared to those seen at goods producers in Europe and other parts of Asia. The most prominent signs of trouble came from the new export orders and future activity indices, which respectively indicated tumbling global demand and softening domestic confidence.”
India’s biggest automaker Maruti Suzuki and peers Hyundai, Mahindra & Mahindra, Fiat Chrysler, Ford and Toyota said they will halt car production due to the coronavirus outbreak.
The move comes after automakers shut plants last week in Europe, the United States, Canada and Mexico.