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12:44 pm - Thursday February 22, 2018

Manufacturing outlook slightly down in third quarter of 2017-18: FICCI Survey

Agencies, Mumbai

FICCI’s latest quarterly survey on Manufacturing suggests slightly less optimistic outlook for the manufacturing sector in the Q-3 (October- December 2017-18) as the percentage of respondents reporting higher production in third quarter has fallen vis-à-vis previous quarter.

The proportion of respondents reporting higher output growth during the Q-3 (October- December 2017-18) has fallen to 47 percent from 50 percent in Q-2,noted FICCI survey. However, the percentage of respondents reporting low production has also come down to 15 percent in Q-3 quarter from 18 percent in Q-2 (July-September 2017-18) quarter, survey added.

This less optimistic outlook for manufacturing in third quarter of current fiscal is reported to be due to factors like rupee appreciation impacting exports, issues with regard to GST implementation and subdued demand in several sectors. In terms of order books, about 42 percent respondents in Q-3 (October-December 2017) are expecting higher number of orders as against 47 percent of Q2 2017-18 which again is reflecting subdued demand in economy.

Latest quarterly survey assessed the expectations of manufacturers for Q-3 (October- December 2017-18) for twelve major sectors namely auto, capital goods, cement and ceramics, chemicals and pharmaceuticals, electronics & electricals, food products, leather and footwear, machine tools, metal and metal products, paper products, textiles and textiles machinery.

Responses have been drawn from over 310 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3 lakh crore. Overall, the capacity utilization in manufacturing remains low. The average capacity utilization for the manufacturing sector is about 75 percent for Q-2 2017-18 as reported in the survey which is similar to that of Q-1 2017-18. As was the case in Q-1 2017-18, the future investment outlook remains pessimistic as 73 percent

Posted in: Business

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