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The growth in the manufacturing sector might moderate in the third quarter (Q3) of FY15 compared to the previous quarter, a new survey said.
According to the survey by the Federation of Indian Chambers of Commerce & Industry (Ficci), although there is optimism about manufacturing, the proportion of respondents expecting higher production vis-à-vis last year fell to 52 per cent in the third quarter from 62 per cent in the second quarter.
"Since only 11 per cent respondents expect negative growth in Q3 vis-à-vis last year, growth is expected in Q3 for manufacturing, though low," said the survey.
According to the survey, the growth is likely to be more broad-based as 12 of 13 sectors are expected to show improvement in production.
The survey gauges the expectations of manufacturers for Q3 for 13 major sectors - textiles; capital goods; metals; chemicals; cement and ceramics; electronics; auto components; leather and footwear; machine tools; food and fast-moving consumer goods; tyres; paper; and textiles machinery.
Responses were drawn from 392 manufacturing units from both large and small-and-medium segments with a combined annual turnover of Rs 4 lakh crore.
Four sectors - paper; cement and ceramics; machine tools and leather; and footwear - are expected to have a strong growth of 10 per cent in Q3.
"Export outlook for manufacturing in Q3 has improved slightly from the previous two quarters but it remains weak and uncertain," the survey said. The proportion of respondents expecting higher exports in the third quarter is 42 per cent compared to 40 per cent in the second quarter and 36 per cent in the first quarter of FY15.
According to the survey, 73 per cent of respondents are not likely to hire additional workforce in the next three months.
"Hiring outlook remains bleak indicating that manufacturing units are not expected to make any significant additions to their existing workforce in coming months," the survey said.
