PMI: Manufacturing Activity In India Slows Down To A 6-Month Low In March

Manufacturing activities in the country slowed down to a six-month low in March 2019 as growth in new orders, production and employment lowered.

The Nikkei India Manufacturing Purchasing Managers' Index (PMI), that is compiled every month based on a survey of over 400 industrial companies, reported a decline to 52.6 for March from 54.3 in February.

A reading of above 50 is positive as it indicates expansion while 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. It further noted that there was a widespread slowdown in growth despite an improvement in operating conditions in the Indian manufacturing industry.

Factory orders and production in March had expanded at the slowest pace since September 2018 while job creation eased to an eight-month low.

"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.

However, business sentiment grew stronger to its 7-month high.

The report noted that the manufacturing sector expansion slowed down in March with metrics on factory orders, production, exports, input buying and employment all moving lower.