look news india
Mumbai: The country's manufacturing sector activity weakened to an eight-month low in the month ending September. Factory output and sales growth showed a moderate slowdown last month, a survey report said. There has also been a continuous decline in the activities of the manufacturing sector for the last three months. Weak profit growth has impacted employee recruitment.
The HSBC Purchasing Managers' Index (PMI) for the manufacturing sector prepared by S&P Global fell to 56.50 in September from 57.50 in August. However, an index above 50 is said to be expanding in that area.
The survey report said September's factory output and sales expansion was the weakest since January of the current year. However, employment increased and business confidence remained at long-term average levels.
On the price front, raw material prices and selling prices increased marginally. PMI retreated for the third consecutive month in September. The growth rate of export orders also remained at the lowest level in one and a half years. Overall sales growth remained weak due to slowing growth in new export orders, the survey report said. Product growth has been slow, especially in the consumer and capital goods sector.
Cost pressures have increased as a result of increases in prices of chemicals, packaging, plastics and metals. Employment growth remained slow in September. Last month saw a decline in the number of part-time and temporary employees in some manufacturing units. Employment growth rate remained at the lowest level in three months. The report estimates that weak profit growth could impact companies' ability to make new hires.