India manufacturing slows again in April: Nikkei PMI

Growth in India's manufacturing sector slowed further to an eight-month low in April due to a softer increase in new orders, according to a survey released on Thursday.

The Nikkei India Manufacturing Purchasing Managers' Index (PMI) declined from 52.6 in March to 51.8 in April, although it remained above the 50-point level separating expansion from contraction. The reading was the weakest since August 2018.

The slowdown was due to weaker order book volumes, which the survey attributed to business activity curbed by the general election that began in April and runs through May. The slowdown, however, was partly offset by solid export growth.

"Growth continued to soften and the fact that employment increased at the weakest pace for over a year suggests that producers are hardly gearing up for a rebound," said Pollyanna De Lima, Principal Economist at IHS Markit, which compiles the survey.

"Disruptions arising from the elections was a key theme. Also, firms seem to have adopted a wait-and-see approach on their plans until public policies become clearer upon the formation of a government.