India’s manufacturing growth decelerated sharply in November as cash crunch slowed down domestic consumption, production of goods and new orders.
The Nikkei/ Markit Manufacturing Purchasing Managers’ Index fell to 52.3 in November from October’s 54.4, its biggest month-on-month decline since March 2013.
Watch What Else Is making News
“PMI data for November showed that the sudden withdrawal of high-value banknotes in India caused problems for manufacturers, as cash shortages hampered growth of new work, buying activity and production,” said Pollyanna De Lima, economist at survey compiler IHS Markit. However, the index held above the 50 mark that denotes growth for the eleventh straight month.