India's factory activity slows to 7-month low amid surging Covid-19 cases

Despite foreign orders growing at a faster pace in March, a sub-index tracking overall demand declined to its lowest since August 2020. Output also grew at its weakest pace in seven months

India's factory activity grew at its weakest pace in seven months in March as domestic demand and output were suppressed amid a surge in COVID-19 cases, a private survey showed, forcing firms to cut headcount again.

Last week, the Indian government advised federal states to try and control the rapid spread of the virus. Tighter restrictions on activity suggest factories could be in for a tough April. Nikkei Manufacturing Purchasing Managers' Index INPMI=ECI , compiled by IHS Markit, declined to a seven-month low of 55.4 last month from February's 57.5, but remained above the 50-level separating growth from contraction for