April manufacturing PMI growth at 8-month-low amid election uncertainty

Inflation eased, most companies did not go for additional hiring in April

Uncertainty arising out of the ongoing general elections affected growth in manufacturing activity, which hit an eight-month low in April, showed the widely tracked Nikkei purchasing managers’ index (PMI).

With growth slowing and price pressures easing, there is likelihood of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) cutting the policy rate for the third successive time in June, said a commentary associated with PMI.

PMI for manufacturing declined from 52.6 in March to 51.8 in April. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

The job situation did not improve much as