Factory activity barely grows in October as GST pinches

PMI down to 50.3 from 51.2 in September, as GST takes toll on new orders

A day after getting a boost from the World Bank’s global report on ease of doing business, and from the core sector data, there is a dampener for the economy.

Manufacturing activity barely managed to grow in October, due to an adverse impact of the goods and services tax (GST) on new coming orders, according to the widely-tracked Nikkei purchasing managers’ index (PMI). 

However, growth in employment remained the same as in September. 

Despite being a month of festivals, October saw the PMI falling to 50.3, from 51.2 in September. A reading above 50 shows expansion and below 50 means