BENGALURU: Growth in India’s factory activity fell to four-month low in January COVID-19 A trade survey showed that sanctions hurt new orders and output, while higher price pressure affected business confidence about the year ahead.
Manufacturing Purchasing Managers IndexCompiled and collected by IHS Markit from January 12-25, January fell from 55.5 in December to 54.0.
While the latest reading is slightly lower than the 54.6 expected in a Reuters poll of economists, the index was firmly above the 50 mark that separates growth from a seventh-month contraction.
This gives evidence that ommicron coronavirus The version will put less pressure on Asia’s third-largest economy than the disastrous Delta version.
“The latest PMI results indicate that the new wave of COVID-19 has had a mild impact on the performance of the Indian manufacturing sector,” Poliana de Lima, associate director of economics at IHS Markit, said in a release.
“Many measures such as output, new orders and input buying remained in expansion mode. Although growth slowed, they were historically strong.”
The new orders sub-index, a proxy for domestic demand, fell to 56.6 from December’s 58.4, the lowest since September, as leading firms cut their workforce for the second consecutive month.
Manufacturing output growth also fell to a four-month low.
The business expectation index, which measures optimism about the year ahead, fell to a 19-month low in January amid ongoing concerns over the pandemic and elevated price pressures.
While input cost inflation eased for the third month in January, it remained high and businesses passed some of the higher prices on to consumers, suggesting that the specter of higher inflation is here to stay.
This can put pressure on the company reserve Bank of India Like some other central banks, to tighten monetary policy sooner than expected.
“The survey participants were concerned that inflationary pressures, the escalation of the pandemic, and any new restrictions it might bring would disrupt production growth,” De Lima said.
Manufacturing Purchasing Managers IndexCompiled and collected by IHS Markit from January 12-25, January fell from 55.5 in December to 54.0.
While the latest reading is slightly lower than the 54.6 expected in a Reuters poll of economists, the index was firmly above the 50 mark that separates growth from a seventh-month contraction.
This gives evidence that ommicron coronavirus The version will put less pressure on Asia’s third-largest economy than the disastrous Delta version.
“The latest PMI results indicate that the new wave of COVID-19 has had a mild impact on the performance of the Indian manufacturing sector,” Poliana de Lima, associate director of economics at IHS Markit, said in a release.
“Many measures such as output, new orders and input buying remained in expansion mode. Although growth slowed, they were historically strong.”
The new orders sub-index, a proxy for domestic demand, fell to 56.6 from December’s 58.4, the lowest since September, as leading firms cut their workforce for the second consecutive month.
Manufacturing output growth also fell to a four-month low.
The business expectation index, which measures optimism about the year ahead, fell to a 19-month low in January amid ongoing concerns over the pandemic and elevated price pressures.
While input cost inflation eased for the third month in January, it remained high and businesses passed some of the higher prices on to consumers, suggesting that the specter of higher inflation is here to stay.
This can put pressure on the company reserve Bank of India Like some other central banks, to tighten monetary policy sooner than expected.
“The survey participants were concerned that inflationary pressures, the escalation of the pandemic, and any new restrictions it might bring would disrupt production growth,” De Lima said.
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