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Japanese manufacturing activity also expanded at a faster pace in April, a survey showed on Tuesday, with domestic demand picking up but export order growth slowing sharply due to the stronger yen.

Purchasing Managers' Index (PMI) for the manufacturing sector dropped slightly in April to 56.2, from 56.6 in March, according to IHS Markit's report on Wednesday.

India's manufacturing sector activity improved marginally in April, driven by rise in new business orders amid favourable demand conditions, amid easing inflationary pressures, says a monthly survey. But while domestic demand supported the rise in production, new orders from overseas fell for the fifth consecutive month in April.

"The construction sector's difficulties in recent months has clearly been influenced by economic, political and Brexit uncertainties fuelling clients' caution over committing to new projects", said Howard Archer, chief economic advisor at EY ITEM Club.

Moreover, despite the overall softer manufacturing conditions, business sentiments surged to the highest in four and a half year as firms expect demand conditions to improve on the back of new projects.

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Improvements in demand conditions and rising production resulted in job creation during April. The distance away from 50 indicates how quickly activity levels are expanding or contracting. Bloomberg's PMI consensus estimate was 56.5 and Dow Jones was also calling for 56.5 for April.

The Institute for Supply Management (ISM) reported that its key manufacturing index fell to 57.3 in April from 59.3 in March. Problematically, the rate of contraction quickened the fastest in just over a year. The rate of growth in output was solid overall and the fastest since January.

Meanwhile, sharper input inflation continues to raise prices of output, extending the current period of inflation to 18 months.

IHS Markit economist Aashna Dodhia said the health of the manufacturing economy deteriorated at the strongest pace since October 2017 in April, reflecting lacklustre demand from domestic and global markets. That suggest Asia's third largest economy is in good heart as disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July fade.