Core Sector Growth At 13-Month Low
New Delhi : Growth in eight core industries slowed in 1.8 per cent in January, the lowest in 13 months, which along with a slowdown in the manufacturing sector has raised hopes of a rate cut by RBI.
Negative growth in crude oil and natural gas and low growth in steel, cement and electricity have led to the dip in the overall growth rate of core industries.
The eight core sector industries — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — had expanded by 3.7 per cent in January, 2014.
Growth stood at 2.4 per cent in December 2014. The data set was revised in January 2014 when the growth rate was 3.7 per cent and the figures before that period are not comparable.
The 1.8 per cent growth in January 2015 is the slowest in the 13 months of the revised data.
Core sector contributes 38% to the overall industrial production, a parameter that RBI takes into account while framing its monetary policy.
“The sluggish performance of available lead indicators, such as the low growth of core industries and automobile production as well as the contraction in merchandise exports, foretell a muted outlook for IIP growth for January 2015,” rating agency ICRA said…
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Manufacturing Growth Slips To 5-Month Low
New Delhi : Manufacturing growth slipped to a five-month low in February as the pace of order-flows slowed and companies also reduced their workforce numbers during the month, says an HSBC report.
The headline HSBC India Purchasing Managers’ Index (PMI) — a composite gauge designed to give a single-figure snapshot of manufacturing business conditions — fell from 52.9 in the previous month to a five-month low of 51.2 in February. This is the second consecutive monthly fall in the manufacturing sector. The factory sector output had hit a two-year high in December 2014.
A figure above 50 indicates the sector is expanding, while a figure below that level means contraction.
“Manufacturing growth in India lost momentum in February, with output and new orders expanding at softer rates than those seen in the past four months,” Pollyanna De Lima, Economist at Markit said, adding that “subsequently, employment decreased, reversing the marginal rise seen in January”. With total new order growth easing further, Indian manufacturers reduced their payroll numbers in February.
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Auto Sales In Slow Lane
New Delhi/Chennai : Dented by high fuel and interest costs, automobile manufacturers on Monday reported mixed sales for February. Sales of India’s largest passenger car manufacturer Maruti Suzuki grew by 8.7% at 118,551 units. Sales of its bread and butter mini segment cars, including Alto and WagonR, rose 7.1% to 39,988 units, while compact segment comprising Swift, Estilo, Ritz and Dzire declined by 6.4% to 42,778 units in February.
Chennai-based Hyundai Motor’s (HMIL) overall sales including exports grew by 2.4% in February. The company managed to sell 47,612 units from an off-take of 46,505 units sold in the like period of last year.
HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said the growth in additional and repeat buyers is higher than that of first time buyers. “Reduction in interest rates could bring in the thrust to break the threshold of low growth and initiate double digit growth,” he added.
Tata Motors’ overall sales, including exports, during February increased by 11% and stood at 44,225 units from 39,951 units sold during the like period of last year. Domestic sales of the company grew by 14 percent at 40,314 units from 35,315 units sold in February 2014.
“With an expected revision in lending rates in the RBI (Reserve Bank of India) policy in early April, the industry should see better times ahead,” said Pravin Shah, chief executive, automotive division, Mahindra & Mahindra.
In the two-wheeler segment, market leader Hero MotoCorp witnessed a 3.85% decline in February at 4,84,769 units. Hero MotoCorp’s rival Bajaj Auto reported a 21% fall in motorcycle sales at 2,16,077 units in February 2015.
Reduction in interest rates could bring in the thrust to break the threshold of low growth and initiate double digit growth”
Rakesh Srivastava
HMIL Senior Vice-President (Sales and Marketing) |
