Manufacturing PMI declines in February. Auto sales remain weak.
India’s factory output slowed slightly in February from the previous month’s eight-year high. This was caused by a modest weakening in demand and output, although overall conditions remained firm as per the Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit.
The Index fell to 54.5 in February, down from January’s 55.3. It stayed above the 50-point demarcation that separates growth from contraction.
Domestic demand, the survey showed, remained above the long-term average while foreign demand was weaker on account of the coronavirus outbreak in China. [BS]
The Never-Ending Slowdown
The auto industry continues to reel under a slowdown in demand as passenger vehicle sales declined in February. Maruti Suzuki India reported a 1.1% decline in sales, Mahindra and Mahindra reported a 42% decline, Tata Motors reported a 34% decline and Eicher Motors reported a 29.2% decline in sales last month.
This comes at a time when the auto industry races towards BS-VI transition as the new fiscal year starts on April 1st. [Moneycontrol]
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