The manufacturing sector is not on a very optimist mood amidst problems including higher rupee and subdued demands along with the early complications under the Goods and Services Tax, Federation of Indian Chambers of Commerce and Industry’s quarterly survey indicate.
The data finding are based on responses from over 310 manufacturing units from both large and Small and Medium Enterprises segments with a combined annual turnover of over 3 lac crore, a release from FICCI informed
The data in the report says that the manufacturing sector in the Q-3 that extends from October- December 2017-18 shows a low trend as the percentage of respondents reporting higher production in third quarter has fallen vis-à-vis previous quarter.
Also, the proportion of respondents reporting higher output growth during the Q-3 that extends from October- December 2017-18 has fallen to 47 per cent from 50 per cent in Q-2, the survey informed.
However, the percentage of respondents reporting low production has also come down to 15 per cent in Q-3 quarter from 18 per cent in Q-2 of July-September 2017-18 period, the survey added.
Citing possible hurdles in the line, the report said that there is less optimistic outlook for manufacturing in third quarter of current fiscal is reported to be due to factors like rupee appreciation impacting exports.
Also issues with regard to GST implementation and subdued demand in several sectors are to add to the stress, it said.
In terms of order books, about 42 per cent respondents in Q-3 of October-December 2017 are expecting higher number of orders as against 47 per cent of Q2 2017-18 which again is reflecting subdued demand in economy.
The data comes from the FICCI’s latest quarterly survey assessed that was conducted explore the sectors including auto, capital goods, cement and ceramics, chemicals and pharmaceuticals, electronics & electricals, food products, leather and footwear, machine tools, metal and metal products, paper products, textiles and textiles machinery.
