Coronavirus situation under control in Delhi, not terrible, says Kejriwal
Maruti reports 54% YoY decline in sales in June; sells less than 40% of pre-coronavirus level
Government Bans 59 Chinese Apps Including Tik-Tok, Shareit, UC Browser, and WeChat
PM Modi to address the nation at 4 pm: What to expect
Maharashtra Extends Lockdown Till July 31 Day After Urging Caution
Coronavirus Vaccine Update
Swarms Of Desert Locusts Reach Delhi Outskirts After Gurugram
Delhi fighting difficult battle against COVID-19, will emerge victorious: Kejriwal
2-Week Lockdown In Guwahati From Monday; Minister Says "Shop By Sunday"
YouTube likely to come up with TikTok-like short video platform
Rs 2,000 crore from PM CARES Fund to be spent on 50,0000 ventilators for COVID-19 patients
Baba Ramdev's Patanjali launches India's 'first Ayurvedic' medicine for coronavirus, Coronil
Coronavirus: Glenmark conducts Fabiflu trial on 1,000 patients; to compete with Gilead's Remdesivir
Jio's golden touch makes Reliance Industries share rise 108% in 3 months
Coronavirus vaccine: When will it be ready? Moderna, AstraZeneca offer answers
Chennai lockdown starts today: Check what is allowed, not allowed
Coronavirus vaccine: Singapore scientists discover 5 antibodies that can combat COVID-19
India-China tension: Indian Army releases list of 20 martyrs; wreath ceremony begins in Leh
Tamil Nadu announces 'maximised restricted lockdown' from June 19 in Chennai, 3 other districts
Maruti Suzuki's Alto becomes India's top-selling car for 16th year in a row

Latest Posts

Manufacturing capacity utilisation declines to 68.9% in Q2FY20, lowest since 2008

India's manufacturing sector capacity utilisation nosedived 68.9 per cent in the September quarter (Q2FY20), hitting its lowest level since 2008. The capacity utilisation stood at 73.7 per cent in April-June quarter of 2008 (Q1FY18). This clearly indicates the severity of the ongoing slowdown in manufacturing sector and weak demand environment.    

Data released by the Reserve Bank of India (RBI) showed that capacity utilisation was at 73.6 per cent in June quarter (Q1FY20). In January-March quarter of 2019, corporate production capacity had improved gradually to a six-year high of 76 per cent from 71 per cent during demonetisation. 

Capacity utilisation is a measure of the extent to which an enterprise uses its productive capacity and is also a key indicator of demand in the economy. A figure close to 100 per cent signals full-capacity utilisation, which may lead to pick up in corporate investments and its profitability.

"The slowdown in manufacturing activity was also reflected in the decline in capacity utilisation to 68.9 per cent in Q2FY20 from 73.6 per cent in Q1 in the early results of the Reserve Bank's order books, inventories, and capacity utilisation survey (OBICUS)," the RBI said in its fifth bi-monthly monetary policy statement.

As per the data, seasonally adjusted capacity utilisation fell to 69.8 per cent in Q2FY20 from 74.6 per cent in the previous quarter.

"Growth in the services sector moderated, weighed down mainly by trade, hotels, transport, communication, broadcasting services and construction activity. However, growth in public administration, defence and other services accelerated in line with the surge in government final consumption expenditure," the statement said.

On a quarterly basis, the Index of Industrial Production (IIP) contracted by 0.4 per cent during July-September quarter (Q2FY20), compared to 3 per cent expansion in Q1FY20 and 5.3 per cent growth in the same quarter last year. Industrial output shrank to the lowest level in eight years to 4.3 per cent in September as compared to a contraction by 1.4 per cent in August 2019 and a growth of 4.6 per cent in factory output in the same month a year back. The data showed that all three broad-based sectors of capital goods production, consumer durables, and infrastructure and construction goods contracted.

Meanwhile, output of eight core industries - which constitute 40 per cent of the IIP -contracted for the second consecutive month in October, dragged down by coal, electricity, cement, natural gas and crude oil.

According to the early results of the Reserve Bank's industrial outlook survey, overall sentiment in the manufacturing sector remained in pessimism in Q3FY20 due to continuing downbeat sentiment on production, domestic and external demand, and the employment scenario.


Alert Message

Please Wait...

Share the Opinion Poll with your Friends At


Share the Survey with your
Friends At