Stories
Manufacturing Sentiment Rebounds in Q2 as Production and Orders Improve
- •Nearly 95 percent of respondents reported higher or unchanged production levels in Q2, up from 77 percent in the previous quarter according to FICCI.
- •Average manufacturing capacity utilisation rose to around 75.5 percent in Q2 from 72 percent previously, with glass manufacturers reporting the highest utilisation.
- •Hiring intentions strengthened as around 43 percent of respondents plan to hire additional workers over the next three months.
- •Around 83 percent of manufacturers reported an increase in production costs driven by higher raw-material and energy costs, rupee depreciation and logistics expenses.
- •Automobiles and auto components led growth expectations with the strongest outlook for expansion between 10 to 20 percent.
Key Questions Answered
Nearly 95 percent of respondents reported higher or unchanged production levels in Q2 FY27, a significant increase from 77 percent in the previous quarter. Order books also improved, with about 90 percent reporting higher or stable orders compared to 77 percent in the April-June quarter.
Average manufacturing capacity utilisation rose to roughly 75.5 percent in Q2 from 72 percent previously. Glass manufacturers reported the highest utilisation at 88 percent, followed by miscellaneous manufacturing at 81 percent and metals at 78 percent.
Around 43 percent of respondents planned to hire additional workers over the next three months, up from 35 percent in Q1. However, cost pressures intensified, with approximately 83 percent of manufacturers reporting rising production costs driven by raw materials, energy, rupee depreciation, and logistics.
