The Nikkei India Manufacturing PMI -- a composite monthly indicator of manufacturing performance -- stood at 52.3 in August, down from a six-month high figure of 52.7 in July, indicating a slower pace of growth in the sector.
A figure above 50 represents expansion while one below means contraction. A sharp increase in buying levels along with drop in stocks of finished goods, however indicated that output growth may rebound in the coming months.
"Growth of Indian Manufacturing production waned in August on the back of softer improvements in both domestic and foreign demand. This led firms to keep payroll numbers unchanged during the month," said Pollyanna De Lima, Economist at Markit, which compiled the survey.
RBI Governor Raghuram Rajan, said this weekend that RBI remains in an 'accommodative mode' and would take a decision as per the data on inflation and other macroeconomic factors.
RBI, which has lowered rates thrice so far this year by 25 basis points each, is scheduled to hold its next bi-monthly monetary policy review on September 29.
The GDP data released yesterday by the government also showed the growth rate slipping to 7 percent in the April-June quarter, from 7.5 percent in the preceding quarter. Besides, the infrastructure sector output growth also slowed down to a three-month low of 1.1 percent in July, further making case for a rate cut by RBI.


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