S&P Global India Manufacturing Purchasing Managers’ Index (PMI) in April rose to 57.2 in April from 56.4 in the month before, as all sub-components of the PMI made a stronger contribution to this month’s figure.
“Reflecting a robust and quicker expansion in new orders, production growth took another step forward in April. Companies also benefited from relatively mild price pressures, better international sales and improving supply-chain conditions,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
“It seems like Indian manufacturers have abundant opportunities to keep powering ahead. Besides seeing the strongest inflow of new work in 2023 so far, capacities were expanded through job creation, input buying was lifted.”
Both new orders and output grew at their fastest pace since December, and that helped firms resume hiring during April, following the first decline in 13 months in March.
Foreign demand also expanded at the fastest pace in four months in April and optimism improved.
“Manufacturers are certainly upbeat towards growth prospects, with optimism improving from March’s eight-month low on the back of contracts pending approval, rising client enquiries, 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 meant firms were able to pass on some of that burden to customers, suggesting retail inflation is unlikely to slow significantly anytime soon.
“Although manufacturers signalled higher operating costs in April — linked to fuel, metals, transportation and some other raw materials — the overall rate of inflation remained below its long-run average despite quickening since March,” the company said in a statement.
The overall level of positive sentiment rose since March, it said.