De Lima said, "Incoming new work expanded at a modest pace that was the weakest since last September."
The manufacturing Purchasing Mangers Index (PMI) data for the month of June 2015 said that the health of Indian economy improved even as growth in factory output eased. The index, for June, stood at 51.3 as against 52.6 in May 2015.
Pollyanna De Lima, Economist at Markit, said, “Following the pick up in the growth rates for output and new orders seen in May, June PMI data pointed to a slowdown in India’s economic upturn."
PMI is a composite single figure indicator of manufacturing performance in a country.
De Lima said, "Incoming new work expanded at a modest pace that was the weakest since last September."
Even though new export orders continued to rise, the rate of expansion moderated to the slowest since December 2013.
However, the manufacturing output in India, even though slowing, is still better than most.
Manufacturing PMI across the globe
How the world fared in June
Manufacturing PMI data as against May and key takeaways.
- Taiwan PMI: Drops to 33-month low
- Malaysia PMI: Production declines at fastest rate in 2.5 years
- Indonesia PMI: Rises but remains in contraction territory
- Russia PMI: Output and new orders continue to fall
- South Korea PMI: PMI posts weakest reading in 33 months
The manufacturing PMI in China for the month of June went up from 49.2 in May to 49.4 but still staying below 50.0 index.
Annabel Fiddes, Economist at Markit said, “The final reading of the HSBC China Manufacturing PMI pointed to a further decline in the health of the manufacturing sector in June. This was predominantly driven by the sharpest rate of job shedding across the sector since early-2009, while output also fell slightly on the month."
The silver lining for Chinese manufacturing was that the rate of fall weakened in June and the total number of new orders rose for the first time in four months.
The jobs in Chinese manufacturing sector continued to decline for the 20th consecutive month. "Furthermore, the pace of job shedding accelerated to the fastest seen since February 2009," Markit said.
Compared to China, India's manufacturing sector saw employment levels similar to May. Markit said, "Significant changes in payroll numbers have not been recorded since the opening month of 2014, and firms reportedly maintained a cost-cautious approach to hiring in the latest survey period."
Apart from India, only Vietnam and USA continue to report PMI manufacturing index above 50 but both registered declines when compared against the month of May.
Markit said that manufacturing PMI dipped to 52.2 in June from 54.8 in May, signalling a continued improvement in business conditions in the Vietnamese manufacturing sector, albeit the weakest in three months.
Andrew Harker, at Markit, which compiles the survey, said “While the Vietnamese PMI data for June are generally positive, there was a distinct slowdown in growth from the strong rates seen in April and May. A particular worry was a drop in new export orders as companies reported weaker demand from international clients. That said, firms continued to raise their employment and purchasing activity, signalling that they remain generally optimistic about the near-term outlook.”
The news from the US is not good either. Even though the index stood at 53.4 (54 in May), the PMI manufacturing index has fallen to its lowest since October 2013.
The output growth has also continued to slowdown for the third consecutive month.
Analysts say that the strong performance of the dollar is one of the key reasons for this timid manufacturing display in the US.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}