India’s manufacturing activity expanded at the weakest pace in twenty five months in November, as output and new orders grew at slower rates, survey data from Markit Economics showed Tuesday.
The Nikkei Manufacturing Purchasing Managers’ Index dropped to 50.3 in November from 50.7 in October. However, any reading above 50 indicates expansion in the sector.
New orders climbed for the twenty-fifth successive month in November, though the rate of increase was the weakest over this period. The growth of new work was hampered by subdued domestic demand and competitive pressures.
Consequently, manufacturing production rose at the softest pace in the current sequence of expansion.
Employment level in the sector broadly unchanged in November, after rising marginally in the prior month.
On the price front, input price inflation accelerated to the strongest in six months during November. Nonetheless, it remained below the long-run series average. As a result, manufacturers raised their selling prices, but only marginal.
“The slowdown in growth combined with weak inflationary pressures support further rate cuts,” Pollyanna De Lima, Economist at Markit and author of the report, said.
The material has been provided by InstaForex Company – www.instaforex.com