India's manufacturing sector loses growth momentum in November: PMI

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell after posting the strongest improvement in the health of the sector in over a decade during October.

PTIUpdated: Tuesday, December 01, 2020, 10:03 PM IST
article-image
Manufacturing Sector |

India's manufacturing sector lost growth momentum in November, as a slower order flow and Covid-related restrictions impacted output.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell after posting the strongest improvement in the health of the sector in over a decade during October.

It posted a three-month low reading of 56.3 in November down from 58.9 in October.

"Aggregate new orders rose at the slowest pace in three months," the Manufacturing PMI report said.

"However, the upturn was sharp and stronger than any seen for eight years prior to September. Companies indicated that sales growth was underpinned by resilient demand, though curbed by the Covid-19 pandemic."

In terms of exports, new orders increased markedly in November, with survey participants reporting strong demand for their goods from key export markets.

Nonetheless, the pace of expansion eased from October's recent high.

As per the report, quantity of raw material or input purchases rose at the slowest pace in three months, but one that was historically marked.

"The Indian manufacturing sector remained on the right path to recovery, with strong growth of new orders and output sustained during November," said Pollyanna De Lima, Economics Associate Director at IHS Markit.

"Although the softening of rates of expansion seen in the latest month does not represent a major setback, since these are down from over decade highs in October, a spike in Covid-19 cases and the possibility of associated restrictions could undermine the recovery."

"Companies noted that the pandemic was the key factor weighing on growth during November, with Covid related uncertainty also restricting business confidence."

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

6 common money fears and ways to conquer them

6 common money fears and ways to conquer them

Gautam Adani's half wealth goes in a flash

Gautam Adani's half wealth goes in a flash

Interpol extends its jurisdiction into the virtual world, will investigate crimes in metaverse

Interpol extends its jurisdiction into the virtual world, will investigate crimes in metaverse

Tech layoffs: Almost 1 lakh employees fired in January alone

Tech layoffs: Almost 1 lakh employees fired in January alone

International Networking Week: An essential annual event to help people grow together

International Networking Week: An essential annual event to help people grow together