MUMBAI, July 1 (Xinhua) -- Indian manufacturing sector lost its growth momentum in June as the Nikkei India Purchasing Managers' Index (PMI) went down at 52.1 from a three-month high of 52.7 in the preceding month of May, HIS Markit, a global information provider that compiles the index, said Monday.
A softer increase in new work intakes translated into slower rises in output and employment, while the upturn in quantities of purchases strengthened, the HIS Markit said in a statement.
"Gauges of factory orders, production, employment and exports remained inside growth territory, but rates of expansion softened in all cases as domestic and international demand showed some signs of fading," said Pollyanna de Lima, principal economist at IHS Markit.
Upbeat growth projections continued to underpin job creation and the stockpiling of inputs, but cracks appeared in the form of a softer rise in employment and waning optimism, Pollyanna said.
While operating conditions in the capital goods sector were broadly unchanged, modest expansions in production and new work were noted in the intermediate goods category. The upturn in total sales was the second slowest in nine months, ahead of that noted in April, the release said.
"Firms tried to boost sales by offering price discounts for their goods, in light of subdued rises in cost burdens. Tamed cost inflation may assist competitive pricing and lift demand to a meaningful extent as we head into the second half of 2019," Pollyanna said.
