Manufacturing grows at slowest pace in 29 months

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India’s manufacturing sector grew at its slowest pace in more than two years in August as fresh export orders dipped due to the slowdown in several developed economies, a survey showed.

The seasonally adjusted HSBC Purchasing Managers’ Index – a headline index designed to measure the overall health of the manufacturing sector – stood at 52.6 in August, down from July’s 53.6. The 50 mark separates growth from contraction.

The latest reading was the fourth successive moderation in the headline index and, while an overall improvement in business conditions was signalled, the rate of expansion was modest.

“The growth momentum in India’s manufacturing sector eased further in August. The main driver of the weaker reading was a significant contraction in export orders, which are facing stiff global economic headwinds,” said Leif Eskesen, chief economist for India and ASEAN at HSBC.

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