The manufacturing PMI compiled by S&P Global rose to 57.2 last month from 56.4 in March, remaining above the 50 mark separating growth from contraction for a 22nd month.
April’s manufacturing PMI suggests India will continue to be one of the fastest growing major economies despite slowing global growth that has undermined momentum in several other countries
Indian factory activity grew at its fastest pace in four months in April, driven by solid growth in new orders and output, a private survey showed on Monday, signaling resilient demand and an encouraging outlook.
The survey results suggest that India will continue to be one of the fastest growing major economies despite slowing global growth that has undermined momentum in several other countries.
The Manufacturing Purchasing Managers’ Index compiled by S&P Global rose to 57.2 last month from 56.4 in March, remaining above the 50 mark separating growth from contraction for a confusing 22nd month expectations in a Reuters poll for a fall to 55.8.
“Reflecting a robust and faster expansion of new orders, production growth took another step forward in April. Companies also benefited from relatively subdued pricing pressures, better international sales and improved supply chain conditions,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence, in a statement accompanying the survey.
“It looks like there are plenty of opportunities for Indian manufacturers to keep moving forward. As well as seeing the strongest influx of new work in 2023 so far, capacity has been boosted through job creation, l purchase of inputs has been lifted.”
New orders and production rose at their fastest pace since December, helping businesses resume hiring in April after the first decline in 13 months in March.
Foreign demand also grew at the fastest pace in four months in April and optimism improved.
“Manufacturers are certainly optimistic about the growth outlook, with optimism improving from March’s eight-month low thanks to contracts awaiting approval, increased customer demand, marketing initiatives and evidence of demand resilience,” De Lima said.
The survey showed input costs rose at a faster pace in April, although improving demand allowed businesses to pass some of that burden onto customers, suggesting that inflation retail is not expected to slow down significantly anytime soon.
Inflation is expected to average 5.3% this fiscal year and 5.0% next year, remaining well above the Reserve’s medium-term target of 4.0% Bank of India, another Reuters survey found.
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