Bangalore: Of India factory production June expanded at its slowest pace in nine months, according to a private survey, as pressure from higher prices continued to weigh down demand and production, which also showed business confidence was at its lowest in two years.
Although inflation After touching an eight-year high of 7.79% in April, it dipped to 7.04% in May, a meaningful decline not seen anytime soon, even as the Reserve Bank of India continues to hike aggressive rates. hopefully.
While the Manufacturing Purchasing Managers’ Index compiled by S&P Global remained resilient, it fell to a nine-month low of 53.9 in June from 54.6 in May, lower than a Reuters poll’s average prediction of 54.5.
It has been above the 50-level separating growth from contraction for a year, indicating that growth in the sector remains solid.
“the Indian construction industry Ended the first quarter of fiscal year 2022/23 on a solid footing, displaying encouraging resilience in the face of sharp price pressures, rising interest rates, rupee depreciation and a challenging geopolitical scenario,” said economics associate at S&P Global Director Polina de Lima said. market.
“Nevertheless, there was a broad-based slowdown in growth across several measures such as factory orders, production, exports, input purchases and employment as customers and businesses restricted spending amid high inflation.”
New orders and output grew at their weakest rate since September last year and firms kept hiring at a slower pace in June.
However, the sub-index tracking delivery times of goods was above the 50-mark for the first time since February 2021 and was at its highest level in nearly three years, indicating a easing of supply chain pressures.
This was partly helped by both input and output prices, which grew at a slower rate last month, but relief from the cost of living crisis still looks a distant prospect.
Indeed, business optimism has fallen to its lowest level since the start of the pandemic two years ago.
Although inflation After touching an eight-year high of 7.79% in April, it dipped to 7.04% in May, a meaningful decline not seen anytime soon, even as the Reserve Bank of India continues to hike aggressive rates. hopefully.
While the Manufacturing Purchasing Managers’ Index compiled by S&P Global remained resilient, it fell to a nine-month low of 53.9 in June from 54.6 in May, lower than a Reuters poll’s average prediction of 54.5.
It has been above the 50-level separating growth from contraction for a year, indicating that growth in the sector remains solid.
“the Indian construction industry Ended the first quarter of fiscal year 2022/23 on a solid footing, displaying encouraging resilience in the face of sharp price pressures, rising interest rates, rupee depreciation and a challenging geopolitical scenario,” said economics associate at S&P Global Director Polina de Lima said. market.
“Nevertheless, there was a broad-based slowdown in growth across several measures such as factory orders, production, exports, input purchases and employment as customers and businesses restricted spending amid high inflation.”
New orders and output grew at their weakest rate since September last year and firms kept hiring at a slower pace in June.
However, the sub-index tracking delivery times of goods was above the 50-mark for the first time since February 2021 and was at its highest level in nearly three years, indicating a easing of supply chain pressures.
This was partly helped by both input and output prices, which grew at a slower rate last month, but relief from the cost of living crisis still looks a distant prospect.
Indeed, business optimism has fallen to its lowest level since the start of the pandemic two years ago.