Manufacturing suffers setback in June; PMI down to 52.1 on weak demand

Easing price pressure is likely to keep overall retail inflation in check

Growth in India’s manufacturing sector slowed last month as the expansion in new orders and output eased despite factories cutting prices again, according to a private survey which also showed a decrease in the rate of hiring.

The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, fell to 52.1 in June from 52.7 in May, but remained above the 50-mark that separates growth from contraction for a 23rd month.

“PMI data highlighted a slight setback in the Indian manufacturing sector during June,” said Pollyanna De Lima, principal economist at IHS Markit.

“Gauges of factory orders, production, employment and exports remained inside growth