<p>The outlook for increased manufacturing activities in the second quarter of this fiscal has been significantly improved, though the cost of doing business and production is rising, according to a survey by industry chamber FICCI.</p>.<p>As per FICCI's latest quarterly survey (Q2) on manufacturing, industry respondents have attributed the hike in production costs primarily to high fixed costs, higher overhead costs for ensuring safety protocols, and a drastic reduction in volumes due to lockdown.</p>.<p>The hike was also attributed to lower capacity utilisation, high freight charges and other logistic costs, increased cost of raw materials, power cost, and high-interest rates.</p>.<p>It said that after experiencing subdued Q1 (April-June 2021-22), the outlook seems to have improved significantly in the second quarter (July-September), it said.</p>.<p>"However, the survey noticed a high percentage of respondents experiencing the rising cost of doing business and production," it said.</p>.<p>On exports, it said the outlook seems improving as around 58 per cent of the participants are expecting a rise in their outbound shipments during the second quarter.</p>.<p>"Hiring outlook for the sector remains subdued as 68 per cent mentioned that they are not likely to hire additional workforce in the next three months," the survey added.</p>.<p>Responses have been drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over 2.7 lakh crore.</p>.<p><strong>Check out DH's latest videos</strong></p>
<p>The outlook for increased manufacturing activities in the second quarter of this fiscal has been significantly improved, though the cost of doing business and production is rising, according to a survey by industry chamber FICCI.</p>.<p>As per FICCI's latest quarterly survey (Q2) on manufacturing, industry respondents have attributed the hike in production costs primarily to high fixed costs, higher overhead costs for ensuring safety protocols, and a drastic reduction in volumes due to lockdown.</p>.<p>The hike was also attributed to lower capacity utilisation, high freight charges and other logistic costs, increased cost of raw materials, power cost, and high-interest rates.</p>.<p>It said that after experiencing subdued Q1 (April-June 2021-22), the outlook seems to have improved significantly in the second quarter (July-September), it said.</p>.<p>"However, the survey noticed a high percentage of respondents experiencing the rising cost of doing business and production," it said.</p>.<p>On exports, it said the outlook seems improving as around 58 per cent of the participants are expecting a rise in their outbound shipments during the second quarter.</p>.<p>"Hiring outlook for the sector remains subdued as 68 per cent mentioned that they are not likely to hire additional workforce in the next three months," the survey added.</p>.<p>Responses have been drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over 2.7 lakh crore.</p>.<p><strong>Check out DH's latest videos</strong></p>