NEW DELHI: Manufacturing output grew at its slowest place in five months in May on rise in input costs and contraction in demand from abroad, a survey showed on Wednesday, adding to the clamour for further rate cuts by the Reserve Bank of India (RBI).
The Nikkei/Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 50.7 in May, against 50.5 in April. A reading above 50 shows expansion.
Interestingly, the official GDP data on Tuesday showed that manufacturing sector output grew by over 9% in 2015-16, helping the overall economy expand by a five-month high rate of 7.6%.
New orders expanded, but at a “slight pace”, driven by the domestic market, while businesses from abroad fell for the first time since September 2013, according to the Nikkei survey.