India’s manufacturing sector growth dropped to nine-month low in August as the HSBC compiled manufacturing Purchasing Managers’ Index (PMI), an important parameter to judge the performance of the sector, dropped marginally to 52.8 in August compared to 52.9 in July. Any reading higher than 50 indicates growth in the respective sector.
In spite of global slowdown and negative export growth, India’s manufacturing sector still managed to grow though at the lower rate. Current worsening euro zone debt crisis and dismal global economic outlook have affected its manufacturing sector significantly during recent months. India’s last quarter GDP growth dropped to 5.5% due to almost zero growth in the manufacturing sector. Now all eyes are on the RBI whether it will cut rates or not during its next policy review meet on 17th September.
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