New Delhi: A day before RBI’s monetary policy, data showed that manufacturing sector growth slowed down in September. This will raise the clamour in markets for a rate cut to boost growth.
The Nikkei Markit India Manufacturing Purchasing Managers’ Index (PMI) — a gauge of manufacturing performance — fell to 52.1 in September from 52.6 in August, indicating that growth in the sector lost some momentum. However, this is ninth straight month where PMI has come above the 50 level that separates growth from contraction. “The Indian manufacturing industry lost momentum in September as growth of new orders eased from August’s 20-month high,” said Pollyanna De Lima, Economist at IHS Markit that compiles the data and author of the report.
But, he said that output is still rising at a decent clip and the sector looks likely to have delivered a stronger contribution to GDP growth in Q2 FY16-17. One area of strength was external demand, with firms noting the strongest rise in new export orders since July 2015.
