Hindi English Translation || Editorial || Slowing momentum: On palpable softening in economic momentum

Slowing momentum: On palpable softening in economic momentum

Persistent (निरंतर, दृढ़) inflation alongside moderate growth remains a challenge

Latest data, including the official Index of Eight Core Industries for September and S&P Global’s Purchasing Managers’ Index (PMI) for the manufacturing sector for October, point to a palpable (स्पष्ट, स्पर्शनीय) softening in economic momentum. The government’s provisional (अस्थायी, अनंतिम) figures for output across the key infrastructure industries, from cement and coal to steel and electricity, show the average year-on-year growth in production eased appreciably to a four-month low of 8.1% in September, from the 12.5% pace posted in August. The pace of expansion flagged across all but one of the eight sectors, with only fertilizers registering a quickening in growth from the preceding (पूर्ववर्ती, पिछला) month as farmers stocked up on the key agricultural input ahead of the rabi season. Heavy rains in the final month of the southwest monsoon season, which resulted in 13% surplus precipitation for September, also likely contributed to dampening (कम करना) demand and output for cement, electricity and steel, all of which saw significant slowing in growth from double-digit paces in August. Sequentially (क्रमबद्ध, क्रमानुसार), production in fact contracted across all the eight sectors, with the overall index declining 4.8% from August’s level. Coal offered the silver lining: the year-on-year growth in output of the fuel eased only slightly to a still robust 16.1% pace, from August’s 17.9%, and posted just a 1.5% sequential contraction.

Independently, the more up-to-date survey-based manufacturing PMI data for October buttresses concerns that broader economic momentum may yet again be sliding for want of traction (खिंचाव, संकर्षण). The seasonally adjusted S&P Global India Manufacturing PMI signalled sectoral growth slid to an eight-month low last month, amid a weakening in demand, particularly for consumer goods. Factories saw new orders rise at the slowest pace in a year, with even international sales losing vigour (ताक़त). More worrying is the fact that less than 4% of the about 400 companies surveyed said they were adding staff, thus depressing job creation in manufacturing to the slowest level since April. Input cost inflation also accelerated. But factory gate inflation was considerably slower indicating that with demand uncertain, producers were forced to temper (To moderate, adjust, or soften something, often one's behavior or feelings, especially in a way that shows control) the pass-through of higher costs. With business confidence ebbing (The movement of the tide out to sea; a decline or decrease in strength, intensity, or value) to a five-month low, the panellists cited rising inflation expectations as the key factor expected to dent (A hollow or depression in a surface, especially caused by an impact or pressure) demand and production growth over the next 12 months. And the advance estimates for lower kharif output, disconcertingly flag the fact that the farm sector may be able to offer little succour (सहायता पहुँचाना) as rural incomes get hit. Policymakers have their task cut out to surmount (विजय पाना, काबू करना) the twin challenges of slowing growth and persistent inflation.

Courtesy: The Hindu

Important Word List With Meaning

1.Palpable (Adjective)

Hindi Meaning - स्पष्ट, स्पर्शनीय
English Meaning - Able to be touched, felt, or easily perceived; clear and obvious.

2.Persistent (Adjective)

Hindi Meaning - निरंतर, दृढ़
English Meaning - Continuing firmly in a course of action despite difficulties or opposition.

3.Provisional (Adjective)

Hindi Meaning - अस्थायी, अनंतिम
English Meaning - Temporary or subject to future change; arranged or existing for the present time only.

4.Preceding (Adjective)

Hindi Meaning - पूर्ववर्ती, पिछला
English Meaning - Coming before in time or order.

5.Dampening (Verb)

Hindi Meaning - कम करना
English Meaning - To make something less intense or active; to reduce or diminish.

6.Sequential (Adjective)

Hindi Meaning - क्रमबद्ध, क्रमानुसार
English Meaning - Arranged in a sequence or following a logical order.

7.Traction (Noun)

Hindi Meaning - खिंचाव, संकर्षण
English Meaning - The action of drawing or pulling something over a surface, gaining support or momentum.

8.Vigour (Noun)

Hindi Meaning - ताक़त
English Meaning - Physical strength and energy; robust health or vitality.

9.Succor (Verb)

Hindi Meaning - सहायता पहुँचाना
English Meaning - Assistance, support, or relief given in times of hardship or distress.

10.Surmount (Verb)

Hindi Meaning - विजय पाना, काबू करना
English Meaning - To overcome a difficulty, obstacle, or challenge, especially after effort.

11.Temper (Verb)

English Meaning - To moderate, adjust, or soften something, often one's behavior or feelings, especially in a way that shows control.

12.Ebbing (Noun)

English Meaning - The movement of the tide out to sea; a decline or decrease in strength, intensity, or value.

13.Dent (Noun)

English Meaning - A hollow or depression in a surface, especially caused by an impact or pressure.