New Delhi: India’s manufacturing PMI (Purchasing Managers’ Index) rose to a four-month high of 57.2 in April 2023 on the back of strong growth in new orders, according to a survey released by S&P Global on Monday.
Manufacturing PMI is released by S&P Global every month, it is a barometer of factory activities in the country. While a print below 50 means contraction in activities, a reading above it shows expansion. Economists and policy-watchers closely follow the monthly survey.
India’s manufacturing PMI in March had come in at 56.4.
“Several PMI indices pointed to more favourable operating conditions across India’s manufacturing industry in April. Factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock-replenishment efforts,” said S&P Global which publishes the survey for both manufacturing and services sectors.
It noted that there was a record expansion in inventories of inputs in April supported by a lack of pressure on supplier capacity. While the input cost inflation reaccelerated, the latest upturn was mild by historical standards.
The survey found that output charges during this period increased at a moderate rate that matched its long-run average.
The survey said that new orders placed with goods producers rose at the quickest pace since last December. Also, the rate of expansion was sharp and above its long-run average.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence said on the findings, “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.”