Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
June 23, Friday 2017 9:03 PM       

       HEADLINES: Smart City third phase announced: Thiruvananthapuram tops the list                                              Joy’s suicide: Tax collected, allegations of correcting documents                                              Joy’s suicide: Preliminary report cites lapse on official’s part                                              Surprise vigilance inspection in village offices once a month from now                                              Youth Congress demands UAPA against Yuva Morcha leader caught for printing counterfeit notes                                              ISRO successfully launches PSLV-C38                                              CBSE declares NEET results                                              Kovind files nomination, accompanied by PM Modi                                              Balochistan: Five killed in blast near IGP office in Quetta                                              N Korea conducts yet another rocket engine test                                              Arab countries send Qatar list of 13 demands to end crisis                                              Kohli & Co. to take on Windies in opening ODI                                              Kaumudi Facebook
       BUSINESS Next Article: Sensex begins 2017 on negative note, down 132 points  
       Manufacturing slips into contraction on cash crunch: PMI data
 
         Posted on :16:37:30 Jan 2, 2017
   
A A
       Last edited on:16:37:30 Jan 2, 2017
         Tags: Manufacturing slips, cash crunch, PMI data
 
NEW DELHI: Hit hard by the demonetisation move, manufacturing sector plunged into contraction in December -- the first shrinkage in a year -- as cash crunch took its toll on new business orders and factory output, a monthly survey showed today.
 
The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- which measures manufacturing sector activity -- fell to 49.6, down from 52.3 in November.
 
The index slipped below the crucial 50 threshold -- which separates contraction from expansion -- for the first time since December 2015. This also marked the biggest month-on- month decline in the index in over eight years or since November 2008 when the global economy had slipped into a severe downturn post Lehman collapse.
 
"Having held its ground in November, following the unexpected withdrawal of Rs 500 and 1,000 bank notes from circulation, India's manufacturing industry slid into contraction at the end of 2016," said Pollyanna De Lima, Economist at IHS Markit and author of the report.
 
Lima added that "cash flow issues among firms also led to reductions in purchasing activity and employment".
 
Survey participants widely blamed the withdrawal of high-value rupee notes for the downturn as cash shortage in the economy reportedly resulted in fewer levels of new orders.
 
Businesses also highlighted challenging conditions in external markets, with a fall in new businesses from abroad ending a six-month long growth.
 
Though December saw a mild decline in manufacturing output, the average reading for October-December remained in the "growth terrain", suggesting a positive contribution from the sector to overall GDP in the third quarter of 2016-17, the survey said.
 
Several researchers and economists have lowered their near-term GDP growth forecasts in the wake of the demonetisation move, though there is a broader view that the decision would help the economy grow faster in longer run.
 
"With the window for exchanging notes having closed at the end of December, January data will be key in showing whether the sector will see a quick rebound," Lima added.
 
The report said the higher prices paid for a range of raw materials made average cost burden increase for the 15th straight month in December, with the rate of inflation picking up since November.
A A
       BUSINESS
Next Article: Sensex begins 2017 on negative note, down 132 points
 
 
BUSINESS HEADLINES
Sensex tumbles 153 pts on profit-booking  
Sensex hits all-time high of 31,522  
RBI to keep rates unaltered in near term: D&B  
Sensex surrenders record gains on GST blues, mixed global cues  
GST to be rolled at midnight June 30: Jaitley  
India plans SAARC meet for startups: Nirmala  
Rupee gains 11 paise against dollar, stocks play anchor  
"Rs 700 cr worth of Momentum Jharkhand proposals implemented"  
JK govt to seek complete consensus before GST implementation  
Mobile data consumption rose 142% in last 3 yrs: Kant  
Gold loses sheen on weak global cues, muted demand  
Rupee opens lower by 15 paise against dollar  
Nifty ends below 9,600 post Fed rate hike  
Paytm, 1mg offer discounts ahead of GST  
Customers may get Rs 5,000 if int'l SIM card fails  
Sensex closes higher, Nifty advances as inflation cools  
RBI issues new Rs.500 bank notes with inset letter 'A'  
Govt close to resolution on stressed power projects: Goyal  
Inflation at record low of 2.18%; factory output slows to 3.1%  
Cut down on salads to save costs: AI staff  
GST: Lowers tax for 66 items, price of coir and cashew to go down  
GST Council revises rates for cinema tickets  
GoAir to launch additional flight on Delhi-Patna route  
Alibaba Cloud to open data centres in India, Indonesia  
Air India making profits in NE; plans Guwahati-Bangkok flight  
 
Do you think Kerala's Gaza street has terror link?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy