SME Times News Bureau | 02 Jul, 2015
Future manufacturing may remain sluggish in India due to
declining output and new order flow, including from overseas and fall in
order-to-inventory ratio while robust capital goods growth is a glimmer of
hope, says HSBC Purchasing Manufacturers Index (PMI) released on Wednesday.
India manufacturing PMI fell to 51.3 in June from May's 52.6 as output and flow
of new orders weakened. As a result, companies slowed down quantity purchases
and cut back on inventory accumulation.
However, inflation indications fell down noticeably after picking up in May as
input and output prices were lower in June.
Order-to-inventory ratio, the indicator of future manufacturing activity fell
from 1.04 in May to 1.0 in June as the decline in new orders is higher than the
decline in finished stock and goods, the index revealed.
According to the study by HSBC economists, 2015 has been quite volatile without
any firm indication of steep fall or sustained uptrend in momentum.
