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India's factory growth slowed to 4-month low in January as Covid curbs hit output

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Purchasing Managers’ Index (PMI) was at 54.0 in January, down from 55.5 in December and signalling the weakest improvement in the health of the sector since last September.

Growth in India's factory activity slowed to a four-month low in January as COVID-19 curbs hurt new orders and output, while high price pressures weighed on business confidence about the year ahead, the survey showed.

The index was firmly above the 50 mark that separates growth from contraction for a seventh month. "The latest PMI results indicated that the new wave of COVID-19 had a mild impact on the performance of the Indian manufacturing sector," Pollyanna De Lima, economics associate director at IHS Markit, said in a release.

Indian manufacturers continued with their restocking efforts in January, purchasing additional inputs at a marked pace. The upturn was, however, the slowest since September 2021, as per the release.

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