Mfg sector growth drops

A study by ABN Amro said that the growth of India’s manufacturing sector came at a weaker rate this October as compared to the previous year.

ABN Amro India Purchasing Managers’ Index (PMI) — an indicator of the performance of the manufacturing industry — fell to a survey low, at 52.2, down sharply from 57.3 in September.

The study said that a low PMI level was underpinned by noticeably slower growth in output, total new orders and employment, combined with the first fall in stocks of purchases in the history of the survey.

As growth of total incoming new work slowed, spare capacity became more available, allowing manufacturers to deplete volumes of outstanding business for the first time in three months and at a moderate pace.