Job-shedding by firms dampens manufacturing recovery in November
Manufacturing activity saw a modest upturn in November, the IHS Markit India Manufacturing PMI survey said on Monday.
Manufacturing PMI rose to 51.2 in November from 50.6 in October, which was a two-year low.
Although there was improved performance in November on the back of new orders and increased output, factories were less optimistic about the future, as they shed jobs for the first time since March 2018.
Anecdotal evidence suggests that growth was supported by the launch of new products and better demand, though restrained by competitive pressures and unstable market conditions.
This is the 28th consecutive month that the manufacturing PMI has remained above the 50point mark, which separates expansion from contraction.
The latest reading was below the survey average (53.8) and indicated only a slight improvement in the health of the sector.
Commenting on the latest survey results, Pollyanna de Lima, Principal Economist at IHS Markit, said: “Some level of uncertainty regarding the economy was evident by a subdued degree of business optimism.
“Also, companies shed jobs for the first time in over a yearand-a-half and there was another round of reduction in input buying. The weakness of these forward-looking indicators suggests that firms are bracing themselves for challenging times ahead.”