India Manufacturing Growth Weakest In 5 Years

(RTTNews) - India's manufacturing activity expanded at the slowest pace in five years as output and new orders rose at weaker rates, final survey data from S&P Global showed on Tuesday.

The HSBC manufacturing purchasing managers' index dropped to 52.8 in August from 53.5 in July. The flash score was 52.9. Nonetheless, a reading above 50 indicates expansion in the sector.

Both output and new orders grew at the weakest rate in five years amid challenging market conditions and softer demand conditions. The growth in export orders also eased, while the overall upturn was driven by gains from markets including Australia, Germany, mainland China, Spain, Thailand, and the US.

Manufacturers responded to lower business requirements by reducing their workforce in August—the first decline in employment in two-and-a-half years. Firms also trimmed purchasing activity in response to weaker demand conditions.

On the price front, input price inflation moderated to a 6-month low. Consequently, selling price inflation was slight and weakest in nearly six years.

Looking ahead, the business outlook over the next twelve months strengthened to the highest level since May but remained subdued by historical standards.