The HSBC/Markit purchasing managers index for the manufacturing industry stood at 50.1 in July, slightly more than 50.3 in June, indicating a broad stagnation of manufacturing operating conditions in India.
For the last three months, the index is barely managing to remain above the crucial 50 mark that divides growth from contraction, but has held above the mark for over four years now.
According to HSBC, the output in India's manufacturing sector fell for the third consecutive month in July, amid evidence of falling new orders, tough economic conditions and raw material shortages.
"Activity in the manufacturing sector was broadly flat in July. Output fell by less, but order flows weakened led by slower growth in export orders," HSBC Chief Economist for India and ASEAN Leif Eskesen said.
The survey further noted that the pace of increase in the purchasing activity in the Indian manufacturing sector was marginal and the slowest in the 52-month expansionary sequence (over four year low).
The danger of defending the rupee revealed
Services growth falters as new business weakest in 2 years
Industry asks PM to remove hurdles to investment
Rupee rebounds to 1-month high of 59.13 vs USD on RBI steps
Who should be the next RBI Governor? Vote!