New Delhi: India’s Manufacturing Purchasing Managers’ Index (PMI) slipped to 58.8 in April from a 16-year high of 59.1 recorded in March. The HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P revealed this.
The April manufacturing PMI matches the flash estimate for the month at 59.1 released earlier. The new figure marks the manufacturing output rising for the 34th consecutive month since October 2020. The reading above 50 means expansion while a score below 50 denotes contraction.
‘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 were increased to one of the greatest extents seen in over 19 years of data collection. Cost pressures ticked higher, though they remained historically mild, pushing up charge inflation to the strongest since January,’ said the survey.
‘Growth was spurred by healthy demand trends and successful marketing campaigns. Other sources of sales gains cited by firms were Asia, Australia, Europe, and the Americas. New export orders increased markedly in April, albeit at a softer rate than that seen for total sales, suggesting that the domestic market remained the main driver of growth,’ the survey said.
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The HSBC India Manufacturing Purchasing Managers’ Index (PMI) touched a 5-month high in February. It was at 56.9 in February. It was 56.5 in January, recovering from an 18-month low of 54.9 in December.
The PMI is a weighted average of the five indices, namely New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%). The index is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
Meanwhile, India’s Services Purchasing Managers’ Index fell to 60.8 in April from 61.2 in March, confounding a preliminary estimate for a rise to 61.7. Despite the decline, the figure still marked one of the fastest growth rates in just under 14 years.
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