India's manufacturing PMI fell to 51.4-2019 in August

       India's manufacturing activity expanded at a slower pace in August due to weak domestic consumer and investment demand, with the Manufacturing Purchasing Managers Index (PMI) falling to 51.4 from 52.5 in July. Although it is still above 50, indicating that India's manufacturing industry is still in the expansion range, the expansion speed in August is the lowest level in 15 months.

      Not only has domestic orders weakened, but with the further deterioration of the international trade environment, the growth rate of new orders from overseas markets in August also slowed down, the lowest since April 2018. Weak sales to domestic and overseas customers, in turn, dampened growth in India's domestic manufacturing output. In August, India's manufacturing industry experienced an unfavorable combination of slowing economic growth and increasing pressure on cost inflation, and the expansion speed was restrained, said paulana Delima, chief economist of IHS Markit. Another worrying sign is the first decline in investment purchases in 15 months, reflecting a willingness to reduce inventory and available capital shortages. Unless manufacturers are willing to invest more, it's hard to see a meaningful rebound in manufacturing output.