India March manufacturing growth at 8-mth low

Indian manufacturing activity grew at its slowest pace in eight months in March, slipping further from its peak in December as consumer demand softened due to high interest rates, a survey showed on Tuesday.
The ABN AMRO Bank purchasing managers' index (PMI) softened to a seasonally adjusted 57.5 in March, its lowest reading since July, from 59.5 in February and below December's 61.9, which was the highest reading since the survey began in April 2005.
A reading above 50 signals expansion while readings below 50 suggest contraction.
The index reflects government data, which has shown annual industrial output growth slowing in recent months from double-digit rates at the start of the fiscal year in April 2007.
The PMI, compiled by UK-based NTC research and sponsored by the Dutch bank, tracks changes in manufacturing business conditions by polling 500 companies each month on output, new orders, employment and prices.
Inflation, including higher prices for raw materials, lower export orders and a slump in consumer demand have depressed manufacturing output in recent months.
The output index fell to an eight-month low of 60.3 in March from 62.2 in February. The new orders index eased to an eight-month low of 64.0 in March from 68.4 in February.
The export index dropped to an eight-month low of 53.0 in March from 55.7 in February.
The input price index fell to 53.8 in March from 57.5 in February, and factory-gate prices fell to an eight-month low of 51.7 in March from 54.2 in February.
In contrast, government data on Friday showed wholesale price inflation soared to a 14-month high of 6.68 percent in the middle of March, well above the central bank's comfort zone of around 5 percent.
Most forecasters expect India's economic growth to have slowed in the fiscal year that ended on Monday from the year-earlier pace of 9.6 percent, which was the strongest growth in 18 years.
The central bank has kept its main lending rate unchanged at 7.75 percent for a year, having raised it five times between June 2006 and March 2007. It also raised the proportion of cash that banks have to keep in reserve with the central bank to keep monetary conditions tight.