Connect to share and comment

India manufacturing activity at 17-month low

PlacardEnlarge
(Globalpost/GlobalPost)

India's manufacturing activity slid in April to its slowest pace of growth for 17 months as a drop in domestic orders and power supply problems affected output, a private business survey showed Thursday.

The Purchasing Managers' Index (PMI) from HSBC, which gives a snapshot of manufacturing health from output to jobs, slid to 51.0 in April, down from 52.0 in the previous month.

A figure of over 50 indicates growth in the sector while below 50 points shows a contraction.

"Manufacturing activity lost momentum again in April, with output growth slowing further on the back of a deceleration in domestic orders and continued power outages," said HSBC chief economist Leif Eskesen.

The survey's findings -- based on data from more than 500 manufacturers -- comes a day before a meeting of the central bank, which is widely expected to cut interest rates to try to jumpstart a sharply slowing economy.

India's economy is estimated to have grown at a decade-low rate of 5.0 percent in the fiscal year ended March.

sal/rob/sm

http://www.globalpost.com/dispatch/news/afp/130502/india-manufacturing-activity-at-17-month-low