New Delhi, Dec 19 (PTI) Manufacturers are "lessoptimistic" on the outlook for the sector in the October-December quarter owing to factors like rupee appreciationimpacting exports and issues related to GST implementation,according to a report.
Ficci's latest quarterly survey on manufacturing suggestsslightly less optimistic outlook for the manufacturing sectorin the December quarter as the percentage of respondentsreporting higher production in third quarter has fallen asagainst the previous quarter.
The outlook for exports appears less optimistic vis-a-visprevious quarters. Although, 48 per cent respondents expect nochange in the export levels, but 32 per cent expect exports tofall. The rupee appreciation has made the respondentsapprehensive of exports outlook with a majority of therespondents (around 57 per cent) reporting that their exportswere affected in the September quarter due to rupee rise.
Moreover, the hiring outlook for the sector remainssubdued in near future as 85 per cent of the respondents in Q32017-18 mentioned that they are not likely to hire additionalworkforce in next three months.
"This proportion is much higher than the previousquarter, where 73 per cent of the respondents were not infavour of hiring additional workforce," Ficci said.
However, the average interest rate paid by themanufacturers has slightly come down over last quarter showingsigns of moderation with an average rate of 10.5 per cent butthe highest rate continues to be as high as 15 per cent.
In terms of order books, about 42 per cent respondents inQ3 are expecting higher number of orders as against 47 percent of Q2 2017-18 which again is reflecting subdued demand ineconomy.
The proportion of respondents reporting higher outputgrowth during the Q3 (October-December 2017-18) has fallen to47 per cent from 50 per cent in Q2, noted Ficci Survey.
However, the percentage of respondents reporting lowproduction has also come down to 15 per cent in Q3 quarterfrom 18 per cent in Q2 (July-September) quarter.
The survey assessed the expectations of manufacturers forQ3 for twelve major sectors namely auto, capital goods, cementand ceramics, chemicals and pharmaceuticals, electronics &electricals, food products, leather and footwear, machinetools, metal and metal products, paper products, textiles andtextiles machinery.
Responses have been drawn from over 310 manufacturingunits from both large and SME segments with a combined annualturnover of over Rs 3 lac crore. PTI RSN SRMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.