MUMBAI, Sept 2 (NNN-PTI) – India’s factory activity lost momentum in Aug, as the Purchasing Managers’ Index (PMI) fell to 52.3, during the month under review, from 55.3 in the preceding month of July, but remained in expansion mode, said a private survey.
Business confidence dampened by concerns surrounding the damaging impact of COVID-19 on demand, as companies paused their hiring efforts, due to softer upturn in sales, said the statement, by IHS Markit, that compiles the PMI index, where a score above 50 indicates expansion and one below that shows contraction.
“Aug saw a continuation of the Indian manufacturing sector recovery, but growth lost momentum, as demand showed some signs of weakness due to the pandemic. Yet, factory orders and output rose across the consumer, intermediate and investment goods categories,” said Pollyanna De Lima, economics associate director at IHS Markit.
Indian manufacturers signaled another monthly rise in cost burdens, thereby taking the current stretch of inflation to 13 months. Cost pressures were linked by survey members to raw material scarcity and transportation problems, the IHS Markit statement said.
Employment levels were broadly stagnant in Aug, as companies reportedly had sufficient workforces to cope with current requirements and confidence remained subdued.– NNN-PTI
