India: Moderating manufacturing PMI - Nomura

India’s manufacturing PMI disappointed at 51 in March, compared with 52.1 in February – marking a five-month low, notes the research team at Nomura.

Key Quotes

“While firmly in expansion territory, sub-indices suggest weak domestic and export orders, lower input and output inflation, and a weakening employment outlook. The (weak) survey data have diverged from the strong cyclical growth observed in demand-side high-frequency indicators. As such, we continue to expect a cyclical recovery in coming quarters with growth likely to recover to 7.5% in 2018 from 6.4% in 2017. However, recent banking sector developments are a downside risk to the sustainability of the current cyclical recovery.”