Growth in manufacturing activities in the country slowed in August as input costs increased and concerns surrounding the damaging impact of Covid-19 on demand and firms’ finances dampened business confidence, a private survey showed on Wednesday.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 52.3 in August, down from 55.3 in July, indicating a softer rate of growth that was subdued in the context of historical survey data. A reading above 50 on the index indicates and below that shows contraction. Uncertainly regarding growth prospects, spare capacity and efforts to keep a lid on expenses led to a hiring freeze in august, following the first upturn in employment for 16 months in July.
As per the survey, manufacturing production increased for the second straight month in August amid reports of improved sales and demand. However, growth was curbed by the pandemic and elevated price pressures.
