Bad news has come for the government on the economic front for the second consecutive day. A day earlier the IIP figures for September were not good. Today the government has suffered a big blow from the manufacturing sector. Yes, the country’s manufacturing activity has been seen at its lowest in 8 months. The main reason for this is said to be the huge decrease in demand and orders. Let us also tell you what the figures of the manufacturing sector are saying.
Manufacturing sector at 8 month low
Manufacturing activity in India remained at an eight-month low in October. There was a decrease in production due to slowness in new orders. On Wednesday, the S&P Global India Manufacturing Purchasing Managers’ Index fell to 55.5 in October, from 57.5 in September. In October it remained at its lowest level in eight months. Last time this level was seen in March. PMI level of 55.7 was seen in that month. Which is a matter of great concern for the government. A day ago, the core sector figures of IIP had also come down to single digit 8.1 percent. Whereas in the month of August this figure was more than 12 percent.
Everything slow from order to production
Pauliana de Lima, associate director of economics at S&P Global Market Intelligence, said the index of new orders has fallen to a one-year low. Some companies have expressed concern about the current demand for their products. According to the survey, there was a slow but substantial increase in total new orders, production, exports, purchasing levels and purchases. Recruitment activity has slowed down and business confidence has reached a five-month low.
Disappointment even in job
According to the survey, the October figures have indicated a decline in growth since September. Anecdotal evidence suggests that slow demand for some products and fierce competition have restrained the boom. Talking about jobs, less than four percent of the companies hired additional employees and 95 percent did not make any changes in their workforce. The rate of job creation is modest and the slowest since April.
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