New Delhi: Reflecting a loss of “growth momentum”, manufacturing activities in the country slowed down to a six-month low in March amid softer increases in new orders, production and employment, according to a survey. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) declined to 52.6 in March from 54.3 in February, a report said. A reading above 50 indicates expansion while a print below that level points to contraction.
“Falling from 54.3 in February to a six-month low, the latest figure highlighted a loss of growth momentum,” the report said, adding that although operating conditions in the Indian manufacturing industry continued to improve, there was a widespread slowdown in growth. As per the report, factory orders and production expanded at the slowest pace since last September while job creation eased to an eight-month low in March.
“Softer increases were registered for new orders, production, input buying and employment. The deceleration was accompanied by subdued inflationary pressures, with rates of increase in input costs and output charges below their respective long-run averages,” it noted. Pollyanna De Lima, Principal Economist at IHS Markit and the author of the report on the PMI, said manufacturing sector expansion in India took a step back in March, with metrics for factory orders, production, exports, input buying and employment all moving lower.
