India's manufacturing sector gauge remained unchanged in April from March but expanded for the fourth straight month, on the back of growth in new orders and improving demand.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI)—compiled by Nikkei and research firm Markit—remained at 52.5 in April, same as that recorded in March. A reading below 50 indicates a contraction and a reading above it indicates expansion.
Stronger growth in new orders and improving demand conditions were some of the key factors behind the expansion in manufacturing activity in April. The factors were offset by slower increases in output, stocks of purchases and employment.
New export orders rose for the third month in a row, but the rate of expansion eased from March and was slight overall.Nikkei India Manufacturing PMI Report
Exports in India have been growing for the last seven months after a prolonged slowdown with the rate of growth in March being the highest in five years, according to Bloomberg data.
Also Read: After Stellar Growth In March, Export Revival On Its Way For India?
A combination of greater production needs and expectations of a pick-up in demand led to manufacturing jobs rising for the second month in a row. The rate of expansion in accumulation of outstanding business eased to the weakest, the report said.
Capcity expansion plans, new product developments, greater advertising and favourable market conditions led to goods producers to be at their most optimistic levels since November 2016. Less than five percent of the manufacturers increased output prices in April, while 93 percent kept it unchanged.
The outlook appears encouraging too, with output expected to remain on an upward trajectory amid reports of planned capacity expansions, new product launches, aggressive marketing campaigns and an improving economic scenario.Pollyanna De Lima, Economist, IHS Markit
Purchasing costs increased for the 19th straight month in April on the back of higher prices in metals, chemicals and plastics. Reports of lorry strikes added to the delivery times of suppliers.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
