Activity in India’s manufacturing sector grew at a weaker pace in May from the previous month. A slower expansion in output and domestic demand helped push the Nikkei Manufacturing Purchasing Managers’ Index (PMI), compiled by IHS Markit, down to 51.2 in May from April’s 51.6. But it remained above the 50-mark that separates growth from contraction for the tenth month in a row. More significantly, the survey yet again showed a build-up of inflationary pressures that would no doubt be watched closely by policymakers. Friday’s survey also showed foreign demand for manufactured goods rose at the strongest pace in three months, though the same cannot be inferred about domestic demand.

Source: Mint June 01, 2018 06:11 UTC