Indias manufacturing sector remained broadly flat in June as output contracted for the second month running and order books shrank for the first time in over four years,according to a survey.
The HSBC Manufacturing Purchasing Managers Index (PMI),compiled by Markit,edged up to 50.3 in June from 50.1 in May.
The index,which gauges business activity in the manufacturing sector excluding utilities has been moving around the 50 mark that separates growth from contraction for two months but has held above it for over four years.
A reading above 50 shows that the sector is expanding,while a reading below 50 shows that the output is contracting.
Manufacturing activity was broadly flat in June. Output continued to contract due to power shortages,albeit less so than last month, HSBC chief economist for India and South East Asia Leif Eskesen said.
The May PMI reading of 50.1 for the manufacturing sector was the lowest since March,2009. The survey further noted that economic conditions in India were fragile,resulting in lower demand.
Moreover,there were also reports of increased competition for new work. During the month of June,the total new orders fell for the first time since March,2009.