India’s manufacturing growth falls to 4-month low in June

New Delhi, Jul 3: Manufacturing growth eased to a four-month low in June owing to weak client demand, water scarcity and concerns related to GST, a monthly survey showed today, rekindling rate cut call. However, foreign demand for India-manufactured goods improved in June, with new export orders moving at the quickest pace since October 2016. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) fell to a four-month low of 50.9 in June, from 51.6 in May, signalling a subdued improvement in the manufacturing sector. In February, the manufacturing PMI read 50.7. “The slowdown occurred due to weak client demand, with orderbooks up at a slight and softer pace. In many cases, businesses indicated that growth was held back as a reflection of water scarcity and… The Goods and Services Tax (GST),” said Pollyanna De Lima, Economist at IHS Markit and author of the report. “On a more cheerful pitch, the PMI survey showed strong foreign demand for Indian-manufactured products in June. New orders from external markets increased at a solid rate that was the most pronounced in eight months,” Lima added. (Agencies)