In the first sign of the demonetisation biting economic activity,
manufacturing growth in November 2016 contracted as the cash crunch hurt
consumption.
In the biggest month-to-month decline since March 2013, the Nikkei/
Markit Manufacturing Purchase Managers’ Index(PMI), a gauge of manufacturing
activity, fell to 52.3 in November from 54.4 in October 2016
“The PMI data for November showed that the sudden withdrawal of
high-value banknotes caused problems for manufacturers as cash shortages
hampered growth of new work, buying activity and production,” said
Pollyanna De Lima, IHS Markit economist and author of the report.
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