SME Times News Bureau | 02 Sep, 2019
Slowing economy and high input costs dragged India's August
manufacturing Purchasing Managers Index (PMI) to a 15-month low.
The seasonally adjusted IHS Markit India manufacturing PMI came in at 51.4 in
August, its lowest since May 2018. In July, the index stood at 52.5.
An index reading of above 50 indicates overall increase compared with the
previous month, and below 50 the decrease.
According to the report, despite flow of new business, the rate of expansion
eased to a 15-month low.
The subdued sales to domestic and international clients in turn curbed output
growth, which softened to the weakest in a year. Some survey members also
reported cash-flow issues and lack of available finance.
Commenting on the latest survey, Pollyanna de Lima, Principal Economist at IHS
Markit, said, "August saw an undesirable combination of slowing economic
growth and greater cost inflationary pressures in the Indian manufacturing
Most PMI indices moved lower, including key health-check measures for new
orders, output and employment. In the last two cases, the rate of expansion was
particularly weak when we look at the survey history.