Factory output growth stumbles in May after rising for 3 straight months

GDP figures also showed manufacturing in the slow lane with

Growth in factory output continued in May but at a lesser pace from the previous month, due to softer demand and slower export, after a faster rise for three straight months.

The widely tracked Nikkei purchasing managers’ index (PMI) survey said May also showed a decline in the pace of growth for jobs in manufacturing; it was marginally positive.

Accordingly, the report’s author expects the Reserve Bank of India (RBI) to change its policy stance in the coming months from the present ‘neutral’ to ‘accommodative’, to spur the economy.

PMI in May was at a three-month low of 51.6, compared to 52.5 in