Manufacturing growth slowdown temporary
View(s):Manufacturing growth has marginally slowed at the beginning of the third quarter but this is somewhat of a temporary slowdown; mostly led by the construction material sector, analysts say.
On the plus side, US consumer spending continues to remain strong while the EU is recovering somewhat, according to analysts. “There can be an apparel lead push on manufacturing heading into Christmas that will largely offset the domestic weakness. Obviously, if the government goes ahead with a pay hike there will be quite a recovery in spending power leading on to a better recovery in manufacturing,” an analyst said.
The rupee depreciated by 4.6 per cent as at last month while yields jumped by 100 basis points mainly owing to heavy foreign outflows, considerably lower foreign currency reserve position and lower bond yields.