India’s manufacturing sector will witness further moderation of growth in Q3, 2011, according to the results of a survey conducted by Federation of Indian Chambers of Commerce and Industry (FICCI).
The manufacturing slowdwown is a result of lower order books, moderate export growth and rising raw material costs. According to FICCI’s Survey, which drew responses from 384 manufacturing units, an overwhelming 87 per cent of total respondents said that they expect growth to moderate in their sector in Q3 of 2011-12 as compared to Q3 of the prior year.
The survey noted worsening demand conditions for the manufacturing sector in Q3 as compared with previous quarters; a significant fall in order books is evident. While in the last two quarters (April-June 2011 & July-September 2011) over 50 per cent and 38 per cent respondents reported higher orders compared to the previous quarter, in Q-3 only 29 per cent respondents reported higher orders than in Q2 (July-September 2011).
FICCI’s latest quarterly survey gauges the expectations of manufacturers for Q3 for major sectors such as textiles, capital goods, metals, chemicals, tyres, cement, consumer electronics, batteries, automotive, textiles machinery, leather & footwear, food processing etc. Responses have been drawn from 384 manufacturing units from both large and SME segments.