Apr 4, 2008

Mfg growth slowest in eight months: Report

Country's manufacturing sector grew at its eight-month low in March amid high input costs and easing of new order growth rate, a report states. The seasonally adjusted ABN AMRO India Purchasing Managers' Index (PMI) edged down in March to 57.5 from 59.5 in the previous month, the data compiled by NTC Research revealed. This was the lowest reading for eight months, but nevertheless pointed to a considerable improvement in operating conditions in the sector, it showed.

The PMI has printed lower than its previous month's reading for three consecutive months now. That suggests that the manufacturing sector growth momentum is losing steam. But, the March reading of 57.5 is still higher than the 36-month survey average of 57.1, ABN Amro Bank said.Both input and output price indices fell quite sharply in March. Considering that the WPI inflation has spiralled to a 13-month high, the easing of inflationary pressures is an encouraging sign. Indian manufacturers continued to expand production at their plants in March, reflecting strong sales growth and efficiency gains. Although the rate of output growth remained marked, it was the weakest for eight months, the NTC Research report stated.