Amid softer expansion in output and new orders, India’s manufacturing sector activity expanded at its slowest pace in the month of March to fall at 5-month low. As per the survey report, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - slowed down to 51.0 in March from 52.1 in February. However, the reading remained above the watershed 50 mark indicating expansion for the eighth consecutive month.
According to the report, thought the output rose to continue expansion rally for eighth successive month with growth in new orders and favourable demand conditions, rate of expansion was modest and the weakest since October, in March. Further, growth was reported across all three broad market groups and consumption goods outperformed the other two market groups. The survey report found that new business placed at manufacturing companies rose for the fifth consecutive month during March but at the weakest pace in the current sequence.
Besides, the inflationary pressures eased in the reported month, as input costs rose at the softer pace and one that was below the series trend, while output charge inflation was marginal and the weakest in the current sequence. However, payroll numbers declined for the first time in eight months, amid reports of spare operating capacity.