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Manufacturing growth
Why is it in the news?
- As per a private survey, business conditions in the India’s manufacturing sector improved in November.
- However, the firms shed jobs for the first time in 20 months.
More in the news
- The IHS Markit India Manufacturing PMI rose to 51.2 in November from 50.6 in October.
- In October, the PMI had fallen to a two-year low.
- It remained above the 50-mark threshold that separates contraction from expansion.
- Contributors:
(1) Consumer goods provided the main impetus to overall growth.
(2) The intermediate goods category returned to expansion territory.
(3) Conversely, there was a solid deterioration in operating conditions at capital goods makers.
- The Decline in Growth and Job Cut:
(1) The job cuts have come amid India’s economy growing 4.5% in the July-September quarter.
(2) This is slowest pace of expansion in over six years.
(3) The decline in growth was led by manufacturing, which saw a 1% contraction in gross value added against a 6.9% rise in the corresponding quarter last year.
Source
The Hindu.