Mumbai, Aug 1 (IANS): A slower rise in new orders eased the pace of India's manufacturing sector output in July, key economic data showed on Wednesday.

According to the Nikkei India Manufacturing Purchasing Managers' Index (PMI), the composite indicator of manufacturing performance declined to 52.3, from 53.1 in June 2018.

An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.

Commenting on the Indian manufacturing PMI survey data, Aashna Dodhia, Economist at IHS Markit and author of the report, said: "The recent improvement in Indian manufacturing conditions lost some impetus in July, with softer rises in output, new orders and employment all recorded."

"However, we must not lose sight of the fact that the sector continued on a steady expansionary path, as production and new business rose at marked rates. Moreover, July survey data pointed to strong demand from both domestic and international sources."