A monthly survey today showed that manufacturing output grew at its slowest pace in four months in April. Purchasing Managers' Index (PMI), a composite indicator of manufacturing sector performance, fell from 52.4 in March to 50.5 in April. A reading above 50 represents expansion while one below this level means contraction. However, this is the slowest pace of expansion in business conditions in four months. Following three consecutive months of growth, Indian manufacturers saw the incoming new orders broadly stagnating in April and sharp rise in input costs. In the first bi-monthly monetary policy review for 2016-17 announced on April 5, RBI governor Raghuram Rajan reduced the key interest rate by 0.25 per cent. However, the industry still wants further rate cuts from the central bank to boost investment. The slowing pace of growth in manufacturing sector will add to the clamour for additional easing of rates by RBI.