Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Manufacturing/  Positive sentiment continues for mfg sector in Q4, capacity utilisation up at 80%: FICCI survey
BackBack

Positive sentiment continues for mfg sector in Q4, capacity utilisation up at 80%: FICCI survey

On hiring front, the outlook for the sector seems to have slightly improved for near future
  • In terms of order books, 44% respondents in March 2019 quarter said they expect the number to go up as against 43% in October-December 2018 quarter
  • On hiring front, the outlook for the sector seems to have slightly improved for near future. (Ramesh Pathania/Mint)Premium
    On hiring front, the outlook for the sector seems to have slightly improved for near future. (Ramesh Pathania/Mint)

    NEW DELHI : Sentiment in the manufacturing sector remains positive as overall capacity utilisation rose to 8% in the fourth quarter, a survey by FICCI said.

    According to FICCI's 'Quarterly Survey on Manufacturing', the overall sentiment in the manufacturing sector remains positive as the proportion of respondents reporting higher output growth (around 54 %) during the January-March 2018-19 remained the same as compared to the third quarter.

    "First time in last many quarters, the overall capacity utilisation in manufacturing has witnessed an increase to 80% in Q4 2018-19. It was hovering at 75% for last many quarters," it added.

    On hiring front, the outlook for the sector seems to have slightly improved for near future.

    "While in Q4 of 2017-18, 70% respondents mentioned that they were not likely to hire additional workforce, this percentage has come down to 62.5% for Q4 of 2018-19," the survey pointed out.

    In terms of order books, 44% respondents in March 2019 quarter said they expect the number to go up as against 43% in October-December 2018 quarter.

    Going forward, it is expected that hiring scenario will improve further as 37.5% respondents in Q4 2018-19 are looking at hiring more people now as compared to 30 per cent in the year-ago period.

    FICCI's survey assessed manufacturers in 12 major sectors namely automotive, capital goods, cement and ceramics, chemicals, textiles, leather and footwear, metal and metal products, fertilisers and pharmaceuticals, and others.

    Responses were drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over 3.56 lakh crore.

    About 72% respondents said the cost of production as a percentage of sales has risen - primarily on account of increased cost of raw materials, wages, power cost, rising crude oil prices, increase in finance cost and rupee depreciation.

    About 40% respondents reported plans for capacity additions for the next six months as compared to 47% in the third quarter.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 12 May 2019, 06:27 PM IST
    Next Story footLogo
    Recommended For You
    Manufacturing Stocks
    ₹557.550.52%
    ITC
    ₹4280.13%
    ₹2,987.85-0.37%
    ₹152.852%
    Switch to the Mint app for fast and personalized news - Get App