India’s manufacturing activity eased in March 2021, with new orders and production slowing as traders lost confidence due to inflation concerns. This was said in a monthly survey on Monday.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 54.0 in March, up from 54.9 in February. The March figures show the weakest growth in production and sales since September 2021. However, overall operating conditions continue to improve for nine consecutive months. In PMI parlance, a score greater than 50 indicates expansion, while a score below 50 indicates contraction.
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S&P Global Economist Paulina De Lima said manufacturing sector growth in India has weakened at the end of FY 2021-22 and companies have spoken of a slowdown in new orders and production. During this time the cost of raw materials increased in sectors such as chemicals, energy, textiles, food and metals.
However, in the midst of all this, the consumer sentiment in March was higher than the previous 12 months. According to the latest survey by Axis My India, the consumption of products has increased in March. There was a 62% increase in household expenditure among households. Which is 8 percent more than the previous month.