Manufacturing sector contracts for third month in a row, index shows

AFP  Getty Images

Manufacturing in India bounced back in August from previous month's GST-related contraction amid resumed growth in new orders, production and employment, a survey said on Friday.

Markit's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10 percent of the economy, rose to 52.2 from 50.5 in July, its highest print since August 2008. "New export orders didn't disappoint either with new business wins from Europe and the US - which all supported the sector's fastest rise in jobs growth since June 2014".

Companies ramped up output for a sixth straight month, thanks to a pickup in domestic demand and strong export orders driven by a favorable exchange rate.

A rebound in manufacturing sector bodes well for a higher GDP growth rate in the current July-September quarter.

That echoed similarly robust official data on Thursday suggesting the industrial sector is continuing to prosper from a year-long, government-led building boom.


China's manufacturing sector remained in the expansion territory in August, fuelled by the strongest increase in new business for just over three years.

August's manufacturing PMI came in at 56.9, far in excess of the economist consensus for a reading of 55.0, and up sharply from the July reading of 55.1.

The central bank has cut the benchmark Selic interest rate aggressively to protect the fragile recovery, with 12-month inflation at its lowest in eighteen years. Business conditions improved across the three main subsectors - consumer, intermediate and investment goods - and at smaller and large-scale producers alike.

"The key question is whether this positive start to the second half of the year can be sustained".

"In addition, manufacturers' optimism regarding future production growth only edged up in August to its five-year average, suggesting that they will invest only cautiously in extra capacity".

Related News:

  • Taylor Swiftly breaks three YouTube and Spotify records

    Taylor Swiftly breaks three YouTube and Spotify records

    Swift portrays a darker, edgier figure in the video and there are many references or innuendos to her past conflicts with others. The obvious beginning, When people started claiming that Taylor Swift is dead after she got exposed.
    Windies pull off magnificent win after Hope ton

    Windies pull off magnificent win after Hope ton

    He put on 117 with Woakes for the eighth wicket, and Woakes and tailender Stuart Broad added another 46 before Root declared. The total turned out to be considerably below-par as the Windies responded with 427 and 322 for five in their two innings.
    Judgement Day for 'Godman' in rape case today

    Judgement Day for 'Godman' in rape case today

    Thousands of police officers sealed off multiple northern Indian cities Thursday while a controversial guru stood trial for rape. A notification in this regard was being issued , he added. 22 trains to Punjab and 7 to Haryana have been cancelled.
  • Delhi BJP looks to review heavy bypoll defeat

    Delhi BJP looks to review heavy bypoll defeat

    He had resigned from Assembly membership and joined the BJP in March this year, necessitating the bypoll. Ved Prakash had won from Bawana in the 2015 Assembly elections in the city on an AAP ticket.

    Filters Are Coming: Facebook Gets a 'Game of Thrones' Mask

    But we do learn that killing the White Walker that created the wights fighting alongside them destroys the wights as well. That's the theory one Reddit user has put forward ahead of the finale of Game of Thrones' seventh season next week.
    Haryana, Punjab burning following Dera Baba's conviction, 25 plus dead

    Haryana, Punjab burning following Dera Baba's conviction, 25 plus dead

    Capt Amarinder, however, expressed grief at the death of seven people from Punjab in Panchkula's violence. All intelligence inputs received by the Punjab police had been shared with Haryana, he added.
  • Canadian GDP sees strongest half-year growth in 15 years: StatsCan

    Canadian GDP sees strongest half-year growth in 15 years: StatsCan

    Consumer spending have played their traditional role as the locomotive accelerating to 3.3 % from 1.9% in the previous quarter. The economists expect that the hurricane Harvey, which is now hitting Texas and Louisiana, weighs in on the economic growth.
    Lebanese army announces cease-fire with Daesh on border

    Lebanese army announces cease-fire with Daesh on border

    The Lebanese army has been battling ISIL fighters in their last border foothold, near the town of Ras Baalbek. The two sides say they have driven the militants from most of the border region.
    Rex Tillerson keeps distance from Donald Trump's race row stance

    Rex Tillerson keeps distance from Donald Trump's race row stance

    But he preferred to refer to a speech delivered while the United States was in the midst of controversy, seeming to stand out of the president's stance.
  • Trump Promises to Donate $1 Million of Personal Money to Harvey Relief

    Trump Promises to Donate $1 Million of Personal Money to Harvey Relief

    Sanders said the President wanted reporters to help him decide which organization would maximize the impact of his funding. Mr Trump, who also visited hurricane-ravaged Texas earlier this week, is expected to return to the region on Saturday.
    Nurse suspected of murdering at least 86 people

    Nurse suspected of murdering at least 86 people

    Numerous 40-year-old's suspected victims were cremated making the new investigation that much harder. Evidently, we got the 90 murder cases and at least as many again that my no longer be proven.
    How to install Android 8.0 Oreo Pixel Launcher 2.1 without rooting device

    How to install Android 8.0 Oreo Pixel Launcher 2.1 without rooting device

    According to Forbes , Android 8.0 Oreo has a lot to offer in terms of battery life and mobile device security. Morpia-certified printers are among the 97% of the printers sold worldwide.


Most liked

Apple to hold event on September 12th
The company is also expected to announce public availability of iOS 11 , tvOS 11, watchOS 4 , and macOS High Sierra . APPLE is set to unveil the eagerly-awaited iPhone 8 at a special event on September 12, it has been claimed.

Dems hammer Trump for 'trickle down' tax plan
Trump will meet with congressional leaders to hammer out those details on Tuesday, a White House official said . And after the Republican plan on healthcare stalled, he warned Congress not to let him down again.

Microsoft Windows Mixed Reality HMDs to run Steam content
With such similar pricing, Microsoft and Dell will need a good pitch to get people to chose their headsets over the competition's. Microsoft officials say that holiday shoppers will be offered two new lines of Microsoft PCs and laptops that start at $499.

San Francisco mayor praises residents, police in wake of peaceful protests Saturday
Members of the group hid their faces behind bandanas and masks while chanting and confronting right-wing protesters. CNN affiliate KRON reported at least one arrest of a man who claimed he was detained because he was wearing a mask.

JAHAN NAMA: North Korea Tests Three Missiles
North Korea test-fired three short-range missiles into the Sea of Japan. Today's launch could be seen as a rejection of that claim. David Benham said in an emailed statement.

Disaster start for Aussies in Bangladesh test
But he maintains the match is still in the balance and has confidence that Australia can turn their fortunes around on day two. I want to win in India, that's big on my bucket list.

Ronda Rousey is Getting Married During the Mayweather vs. McGregor fight
While White did say he got an invite to Rousey's nuptials, he's obviously got another key event on his calendar Saturday night. He added that although Rousey is very happy to finally Wednesday , she has not announced any retirement plans yet.

Mourinho refuses to take credit for United's super subs
Mourinho refused to take credit for the substitutions that changed the game, preferring to deflect the spotlight onto his players. So I think it will look like last year but this year the Red Devils will be on top".

Hurricane Harvey Disrupting Cruise Vacations Out of Texas Ports
Passengers aboard the Carnival Freedom told CNN they were anxious about their vehicles, which were left at Galveston's port. Two of them were temporarily diverted to New Orleans on Friday and the third has stayed in Cozumel, Mexico, the firm said.

SpaceX Launches Earth-Observing Satellite, Lands Rocket on Ship at Sea
It's hard to believe it was less than two years ago that a SpaceX Falcon 9 landing was an elusive and unprecedented achievement . It was the 15th successful landing for the a first-stage booster by SpaceX, with the others occuring following Florida launches.

Apple's next self-driving phase is an employee shuttle
Executive Steve Zadesky, originally in charge of Titan, preferred to build a semi-autonomous vehicle, much as Tesla has now. Apple is still "playing catch-up" with its self-driving auto technology, one person who's seen the tech says.

Xbox One X Project Scorpio Edition is Already Sold Out
Even if they bought the subscription service for online multiplayer, you wouldn't be able to play together. The Xbox One X will be great when paired with a 4K TV, but most of the gamers will probably not own one.

How to tell if you damaged your eyes during solar eclipse
If you damaged your eyes, you'll likely experience symptoms like altered vision today, but the odds are in your favor. If you looked at the sun during the eclipse with your naked eye, you might suffer from some of these conditions.

Study reveals link between vitamin B supplementation and lung cancer
You also don't have to worry if you regularly eat foods high in vitamin B , like chickpeas, clams, tuna, salmon, or red meat. We were unable to address whether lung cancer patients had improved or worsened prognosis if they took these supplements.

Rocket League: Switch Exclusive Mario, Luigi Cars Revealed
And finally, a Metroid auto , called Samus' Gunship, will also make its way to the Switch version with a "Wave Beam" trail. A new trailer has been released to accompany the announcement showing the Battle-Cars in action; watch it below...