NEW DELHI: Despite recording a slight moderation in activity, the HSBC India Manufacturing PMI posted a 58.8 print in April amidst strong demand conditions, data released by S&P Global on Thursday showed. In March, the Manufacturing PMI had come in 59.1.
Operating conditions improved at the second-fastest pace in three-and-a-half years, supported by buoyant demand during April, said S&P Global. Firms experienced a sharp upturn in new business intakes, and scaled up production accordingly. “With sales expected to remain positive, buying levels were raised and input stocks lifted to one of the greatest extents seen in over 19 years of data collection,” said the global ratings agency.
The manufacturing PMI is an indicator which measures changes in manufacturing activity in the country as compared to the previous month. A reading above 50 denotes expansion in services activity, while a reading below points to contraction.
Indian manufacturers reported robust demand for their goods in April, from domestic and external clients, said S&P Global. Total new orders rose sharply, with the pace of expansion being the second strongest since the start of 2021.
On the prices front, firms reported an increase in input costs during April. Among the items mentioned as up in prices were aluminium, paper, plastics and steel, said S&P Global. As a result, Indian manufacturers increased their selling prices in April. The rate of charge inflation quickened to a three-month high, converging to its long-run average, the global ratings agency stated.
Employment also rose during April, albeit at a moderate pace. “To fulfil current and expected improvements in demand, manufacturers hired additional staff at the start of the first fiscal quarter,” said S&P Global.
Firms forecast higher output in the year ahead, relative to present levels on the back of expectations that demand will remain buoyant.
Source: The Financial Express
