Manufacturing activity slowed to a four month low in June despite an increase in orders from abroad, a private survey showed on Monday. The Nikkei India Manufacturing Purchasing Manager's Index (PMI) slowed to 50.9 in June from 51.6 in May as a softer rise in factory new orders resulted in weaker growth in productionA reading above 50 on the index indicates expansion. "The slowdown occurred due to weak client demand, with order books up at a slight and softer pace," said Pollyanna De Lima, economist at IHS Markit and author of the report. "With the impacts of demonetisation largely over and the GST unlikely to substantially derail consumer spending, IHS Markit forecast real GDP growth to hit 7.3% for FY 17-18 as a whole," De Lima added. Finance Minister Arun Jaitley expects India's GDP to grow 7.5% in 2017-18, higher than 7.1% in 2016-17.

Source: Economic Times July 03, 2017 06:17 UTC