Manufacturing growth slows to four-month low in April

New Delhi, May 2

Manufacturing output grew at its slowest pace in four months in April as new orders stagnated and input costs rose sharply, a monthly survey showed today, adding to the clamour for further interest rate cut by RBI.

The Nikkei/Markit India Manufacturing Purchasing Managers’ Index (PMI) — a composite indicator of manufacturing sector performance — fell from 52.4 in March to 50.5 in April.

A reading above 50 represents expansion while one below this level means contraction. However, this is the slowest pace of expansion in business conditions in four months.

“PMI data for India show a marked slowdown in output expansion during April, as growth of new work ground to a halt following a robust increase in the prior month,” Pollyanna De Lima, Economist at Markit and author of the report said.

Following three consecutive months of growth, Indian manufacturers saw the incoming new orders broadly stagnating in April. Though new orders from abroad continued to rise, the new export orders grew at the slowest pace since last October. — PTI