India's manufacturing sector eased in June due to weak growth in new business inflows as companies took a cautious line on hiring, an HSBC survey said on Wednesday. The HSBC India Purchasing Managers' Index (PMI) fell to 51.3 in June from 52.6 in May, amid slowest rise in new orders since September 2014.
“Following the pick-up in growth rates for output and new orders seen in May, June PMI data pointed to a slowdown in India’s economic upturn,” said Pollyanna De lima, Economist at Markit, which compiles the data.
PMI is a composite gauge designed to give a single figure snapshot of manufacturing business conditions. A figure above 50 indicates expansion while one below that level means contraction.
“New business expanded at a noticeably weaker pace, in part reflecting a loss of momentum in export business. Moreover, manufacturers remained in cautious spirits and employment numbers were unchanged once again,” lima added.