2023.05.0106:32:00UTC+00India's Manufacturing Growth Strongest In 4 Months

India's manufacturing activity expanded at the fastest pace in four months amid faster rises in new orders and output along with a lack of pressure on supplier capacity, the results of the purchasing managers' survey from S&P Global showed on Monday.

The manufacturing Purchasing Managers' Index, or PMI, rose to 57.2 in April from 56.4 in February. A reading above 50 indicates expansion in the sector.

Both output and new orders grew at the quickest pace this year so far. The upturn in new business was supported by favorable market conditions, demand strength and publicity.

A relatively mild price pressure, improved international sales, as well as improved supply-chain conditions also benefited companies.

In April, manufacturers added to their input inventories due to robust new business growth and increasing production requirements. The rate of stock accumulation climbed to a survey peak.

Indian manufacturers faced higher operating costs in April, linked to higher costs for fuel, materials, transportation and some other raw materials. Nonetheless, the overall rate of inflation remained below its long-run average. Output price inflation also rose to a three-month high.

Employment levels in the sector increased marginally at the start of the second quarter.

"Manufacturers are certainly upbeat towards growth prospects, with optimism improving from March's eightmonth low on the back of contracts pending approval, rising client enquiries, marketing initiatives and evidence of demand resilience," Pollyanna De Lima, economics associate director at S&P Global, said.