<div>Indian manufacturing activity slowed more than expected to a seven-month low in September due to softening demand and output, a business survey showed on Thursday.</div><div> </div><div>The Nikkei Manufacturing Purchasing Managers' Index, compiled by Markit, fell to 51.2 in September from 52.3 in August and against predictions of 52.0. A reading above 50 indicates expansion.</div><div> </div><div>"Despite having been supported by sustained increases in new work, growth of Indian manufacturing production in September was weighed down by a difficult economic climate," said Pollyanna De Lima, economist at Markit.</div><div> </div><div>Concerns of slowing growth in global economies, most notably China, showed in the new orders sub-index which fell to a three-month trough and dragged output to its lowest since May 2014.</div><div> </div><div>The output sub-index dropped to 52.0 in September from 54.5.</div><div> </div><div>In a bid to boost the economy, the Reserve Bank of India cut its benchmark repo rate by a larger than expected 50 basis points to a 4-1/2 year low of 6.75 percent on Tuesday. It also downgraded its growth estimates for this fiscal year to 7.4 percent from 7.6 percent.</div><div> </div><div>Weak inflation has helped the RBI ease policy aggressively this year and the survey showed price pressures could remain subdued in the months ahead.</div><div> </div><div>The input prices sub-index fell to its lowest since February 2009, owing to falling commodity prices, and manufacturers in turn passed on the lower cost to customers.</div><div> </div><div>"Input costs decreased for the second month running in September, a situation not seen since the financial crisis. This provided firms with more room for price negotiation and selling prices were lowered on average, improving manufacturers’ competitiveness," De Lima said.</div><div> </div><div>(Reuters)</div>