June factory growth at 9-month low as inflation worries bite

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BENGALURU: India’s factory output expanded at its slowest pace in nine months in June as elevated price pressures continued to dampen demand and output, according to a private survey, which also showed business confidence was at its lowest in over two years.
Although inflation eased in May to 7.04% after touching an eight-year high of 7.79% in April, a meaningful decline is not seen anytime soon even as the Reserve Bank of India is expected to continue with aggressive rate hikes.
While the Manufacturing Purchasing Managers’ Index , compiled by S&P Global, remained resilient, it fell to a nine-month low of 53.9 in June from May’s 54.6, lower than the Reuters poll median prediction of 54.5.
It has been above the 50-level separating growth from contraction for a year, indicating growth in the sector has remained solid.
“The Indian manufacturing industry ended the first quarter of…

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