India's manufacturing activity eased in the month of August to 15-month low, on the back of subdued sales to domestic and international clients. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - slipped to 51.4 in August from 52.5 in July, its lowest mark since May 2018.
As per the survey report, subdued sales to domestic and international clients in turn curbed output growth, which softened to the weakest in a year. Employment also rose only marginally and to a lesser extent than in July. Further, inventories of manufactured goods decreased further in August, taking the current stretch of depletion to 25 months. The pace of reduction was marked and the quickest since last September.
The report said that although Indian manufacturers saw their cost burdens increase to a greater extent in August, the rate of input price inflation remained below its long-run average. On the other hand, charge inflation eased as a number of factories refrained from price hikes amid efforts to boost sales.
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