(MENAFN- KNN India) New Delhi, May 2 (KNN) India's manufacturing sector experienced a slight moderation in growth during April, however, it remained firmly entrenched in a robust expansionary trajectory, according to the latest purchasing managers' index (PMI) data released on Thursday.
The HSBC India Manufacturing PMI eased to 58.8 in April from March's 16-year peak of 59.1, though it continues to signal a marked improvement in operating conditions.
The report highlighted that resilient domestic demand fuelled a sharp rise in overall new orders at manufacturers, with the rate of expansion being among the strongest registered since the beginning of 2021.
Successful marketing campaigns were also cited as supportive factors bolstering order book volumes. External demand displayed positive signals as well, with new export orders increasing notably, albeit at a more tempered pace compared to total sales.
To fulfil order requirements, manufacturing companies stepped up input purchasing at one of the fastest rates on record. Employment levels also saw a moderate increase as firms augmented production capacities to meet current and anticipated demand growth.
On the price front, input costs faced upward pressure from higher raw material prices and labour costs, though overall cost inflation remained below historical norms. Manufacturers passed on a portion of the increased cost burdens through higher selling prices, a move enabled by the prevailing strength of demand conditions.
Pranjul Bhandari, Chief India Economist at HSBC, commented,“April's manufacturing PMI signalled the second-strongest improvement in operating conditions over the past three-and-a-half years, underpinned by robust demand dynamics.”
Bhandari noted that while input cost pressures were modest overall, resilient consumer demand allowed firms to protect profit margins via output price hikes.
The India Manufacturing PMI has now surpassed the neutral 50.0 threshold for 26 consecutive months, with the latest reading considerably above the long-run series average of 53.9, underscoring the health of India's manufacturing economy.
(KNN Bureau)
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