Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
News18 » Business
1-min read

Softening Demand Drags Indian Factory Growth to Two-year Low in October: Report

That mirrors a recent sharp deceleration in global manufacturing activity as a protracted U.S.-China trade war took a toll on business sentiment, investment and overall growth.

Reuters

Updated:November 1, 2019, 1:17 PM IST
facebookTwitter Pocket whatsapp
Softening Demand Drags Indian Factory Growth to Two-year Low in October: Report
A general view of Mumbai's central financial district. (Image: Reuters)

Bengaluru: India's factory activity growth hit a two-year low in October as new orders and output rose at a slower pace, dragging business confidence to its weakest since early 2017, a survey showed on Friday, suggesting more policy easing is on the cards.

That mirrors a recent sharp deceleration in global manufacturing activity as a protracted U.S.-China trade war took a toll on business sentiment, investment and overall growth.

The Nikkei Manufacturing Purchasing Managers' Index , compiled by IHS Markit, dropped to 50.6 last month from September's 51.4, confounding expectations in a Reuters poll for a rise to 51.8.

Just the same, it has held above the 50-point threshold mark that separates growth from contraction for the 27th straight month, an uninterrupted run not seen for around five years.

"PMI data for October showed a continuation of manufacturing sector weakness in India, with sales growth softening to the slowest in two years," noted Pollyanna De Lima, principal economist at IHS Markit.

"Weakening demand had a domino effect in the manufacturing industry, knocking down rates of increase in production, employment and business sentiment."

The new orders sub-index, a proxy for domestic demand, slumped to 51.3 from September's 52.3, its lowest since October 2017. That pushed firms to slow the pace of hiring to a six month low, which is likely to raise concerns for Narendra Modi's government given it is under pressure to create more jobs.

Moreover, in a further sign the ailing economy will take a while to recover, optimism slipped in October to its weakest since soon after a 2016 high-value currency ban that affected day-to-day operations of small- and medium-sized businesses.

The downturn in overall business activity and demand suggests the Reserve Bank of India might need to ease policy again, on top of the cumulative 135 basis points of rate cuts delivered this year.

Certainly, the inflation gauge in the PMI survey indicated the RBI has the headroom for further policy action, as input prices declined for the first time in over four years. While firms raised output costs at a faster rate compared to September it is unlikely to push overall inflation above the central bank's medium-term target of 4%.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
SBI 321.90 5.20
Bharti Airtel 393.05 8.43
ICICI Bank 499.85 0.24
Reliance 1,470.85 0.55
Yes Bank 68.70 -0.07
Company Price Change %Gain
Cipla 463.10 2.57
SBI 322.00 5.19
Bharti Airtel 393.20 8.42
Eris Life 410.15 -0.19
Yes Bank 68.70 -0.07
Top Gainers
Company Price Change %Gain
Bharti Infratel 227.15 8.87
Bharti Airtel 393.05 8.43
SBI 321.90 5.20
Grasim 755.15 2.89
Cipla 463.25 2.63
Company Price Change %Gain
Bharti Airtel 393.20 8.42
SBI 322.00 5.19
Kotak Mahindra 1,623.00 1.60
Sun Pharma 414.90 1.18
Tata Motors 168.60 0.96
Top Losers
Company Price Change %Gain
IOC 131.70 -3.76
Hero Motocorp 2,543.20 -1.87
BPCL 506.55 -1.57
Maruti Suzuki 7,147.20 -1.38
Vedanta 142.10 -1.32
Company Price Change %Gain
Hero Motocorp 2,542.85 -1.85
Maruti Suzuki 7,147.00 -1.38
ITC 250.65 -1.30
Vedanta 142.10 -1.29
NTPC 117.20 -1.14

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results