India Economy, August PMI manutacturing actviy stows to 1S-merth low The Economic Ties OMIC TIMES Benchrarts > NSE GainarLarge Cap > Prodbous Vial > _a ‘Swans, FO Mes pM } an Sone are ity Ove \ HOFC Asset Manage Gola (Mex) (R109) 17595-1045 i 2.78060 8885 nem sears 93.00" | August PMI manufacturing activity slows to 15-month low 'BYKARUNAIF SINGH ET BUREAY | UPOATED:SEP 09,2019, 06:34 AMIS Pater NEW DELHI Manufacturing activity in india slumped to a 15-month ow in August as sales slowed, forcing factories to cut back on production, a private survey showed, whi separately released government numbers showed muted outpu rise in the infastructure sector in Jy. ‘The twin sets of data indicated the lack of any indications of recovery, both in demand or Investment, in the economy in the second quarter from the six year low it touched i the June quarter. ‘The IHS Markit India Manufacturing PMI fel to 51.4 in August from 52.5 in JUy, its lowest since May 2018 and below ts long-run average of 53.9. However, it remained above the 50- point mark that separates expansion from contraction, PMI stands for purchasing managers’ index. ‘The index of eight core industries, which measures output in eight infrastructuze industries, rose 2.1% in July, ahead of 0.7% in June. This indexhas a 40% weightin the Index of Industrial Production (IP), suggesting modest industial growth in July. Data released on Big Change: Friday showed the krdian economy grew 5% in Aprillune period, the lowestin 25 quarters. *enofFhe- TWIN Trouble | Pt adore data show no upturn in the economy Manufacturing PMI | Core sector crawts | What t | Something to Cheer atismonthiow | amatcow | Means. Festive buying Weakness | can it sentiment ‘Show robust roth Pete rid Pern en etre inosine “Most PMlindices moved lower, including key healcheck meastzes for new orders, ouput and employment” said Pollyanna de Lima, principal economist at HS Markit “Another worrying sign was the fist drop in input buying for 15 months, wbich reflected a mixture of intentional reductions in stocks and shortages of avaitable finance.” New business continued to fow in, Bi August saw the rate of expansion ease to @ 15-month ow, the survey sald. Manufacturing output grew at the slowestin a year and job growth remained marginal despite output expansion. Stops Announce: ithe last wo week ‘s amourced a number of measures inching consolidation of pubic sector barks and capital infusion inthem be: ‘reign investment norms and steps to ease credit flow to reverse the slowdown, (Oxdord Economics said bndia's fukyear growth could slip below 6% in 2019 and expects a further cut of75 basis points in the benchmark interest ate by the Reserve Bank of india. The RBthas already cutinterest rates by 110 basis points tis year in order to shore up growth, hipevleconamictimes ind atimes.com/newaleconamyindcalrsind-manutacturing-grovdt-a-15-ment- loin august-pmpinfartcley7002848.crs 12ros2019 India Economy, August PMI manutacturing actviy stows to 1S-merth low The Economic Ties ‘One basis points one-hundredth of a percentage point The country's largest car manufacturer Maruti Suzuki posted a 35.9% dectine in sales in Augustin yet another dismal month for most ‘automakers. Stil, producers remained optimistic in August, expecting an increase in demand as wellas marketing efforts to support output growah, ‘according to the survey, Inthe core sector, cement (7.9%) and size! (6.6%) posted good growth. “Post the surprisingly weak GDP growth momentum in Q1 FY20, the moderatoly heathy growth of cement and steel outputin July 2019 offers Some encouragement,” said Adit Nayer, principal economist, CRA, "However, we await evidence of a broader turaround in activity in additional sectors, particularly around the festive months, before confrming that an uptum has taken root.” Stay on top of business ows with The Economie Times App. Download it Now! hipevleconamictimes ind atimes.com/newaleconamyindcalrsind-manutacturing-grovdt-a-15-ment- loin august-pmpinfartcley7002848.crs