Mfg growth slowest since Nov: Survey

New Delhi: The manufacturing sector continues to remain under stress. Slowing export orders and output pushed the manufacturing sector to post its weakest pace of growth since November prompting economists to say that the onus is on the government to revive growth. 

    The HSBC Purchasing Managers Index (PMI), which measures the overallhealth of the manufacturing sector stood at 52.9 in July, down from the previous month's reading of 55.0, signaling a slowdown in the sector. The survey is based on a data compiled monthly from over 500 manufacturing companies. 
    The survey showed that new orders continued to rise but at the weakest rate since last November as new export orders fell for the first time in October, 2011. The slowing global economy, high interest rates, stubborn inflation and high input costs have hurt expansion in the manufacturing sector. Delay in implementation of policies and getting approvals have also hurt projects while infrastructural bottlenecks such as erratic power supply have also added to the woes. 
    "Manufacturing activity grew at a slower clip in July on the back of power outages and a moderation in order inflows, with the weak global economic conditions dragging down export orders," said Leif Eskesen, chief economist for India and ASEAN at HSBC. 
Core sector growth slows to 3.6% in June 
New Delhi: Growth in the key infrastructure sector remained sluggish in June with crude oil, natural gas, fertilizers and steel posting a decline. Data released by the commerce and industry ministry on Wednesday showed the eight core sectors spanning coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement and electricity grew 3.6% in June, lower than the 5.6% growth registered in June, 2011. The government marginally revised upwards the May reading to 4% from the previously reported 3.8% expansion. TNN