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Strong sales growth in manufacturing sector
Why is it in the news?
- As per RBI data, the manufacturing sector, particularly the textile, iron and steel segments, maintained the pace of sales growth in the second quarter of 2018-19 compared with the year-earlier period.
More in the news
- As per the RBI analysis of 2,700 listed private sector non-financial companies, demand conditions in the manufacturing sector maintained its pace in the September quarter 2018-19.
- The manufacturing sector sales growth was mainly supported by robust demand conditions in chemical and chemical products, iron and steel, and petroleum products industries coupled with significant improvement recorded by textile industry.
- The central bank said heavy moderation was seen in the sales growth of motor vehicles and other transport equipment, driven in part by a large adverse base effect, and pharmaceutical and medicine industries.
- The information technology (IT) sector also recorded further improvement in sales growth over the year-ago period.
- On the expenditure front, manufacturing companies continued to face rising input cost (cost of raw materials, staff cost) pressures.
Source
The Hindu.