India's manufacturing recovery fizzling out

Indian manufacturing growth nearly stalled in May as factory output shrank for the first time in over four years, a survey showed on Monday, suggesting the economy remained frail at the start of the new fiscal year, Mint reported.

The sombre PMI findings came hard on the heels of data released on Friday that confirmed Asia’s third largest economy grew at its slowest pace in a decade in the fiscal year that ended in March.

The overall HSBC manufacturing purchasing managers’ index (PMI), which gauges business activity in Indian factories but not its utilities, sank to 50.1 in May from 51 in April, and was the third straight monthly fall.

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