Manufacturing sector activity inches up on new orders
India Manufacturing PMI rose to 51.2 in Nov from 50.6 in Oct
New Delhi: The country's manufacturing sector activity saw a marginal rise in November as growth rates for new orders as well as production were modest amid competitive pressures and unstable market conditions, a monthly survey said on Monday.
Subdued sales amid challenging economic scenario prevented hiring in November, with payroll numbers declining for the first time in 20 months, the survey said.
Some firms were able to secure new work amid successful marketing and strengthening demand, but others struggled in the face of competitive conditions, amid challenging economic scenario and troubles in the automotive sector.
The IHS Markit India Manufacturing PMI rose to 51.2 in November from 50.6 in October, when it had fallen to a two-year low, indicating only a slight improvement in the health of the sector.
According to the survey, growth was supported by the launch of new products and better demand, though restrained by competitive pressures and unstable market conditions.
In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
"After pulling back noticeably in October, manufacturing sector growth displayed a welcoming acceleration in November.
Still, rates of expansion in factory orders, production and exports remained far away from those recorded at the start of 2019, with subdued underlying demand largely blamed for this," said Pollyanna de Lima, Principal Economist at IHS Markit.
The survey further noted that growth rates for new orders and production were "modest" and employment falls for first time since March 2018.