New Delhi, May 2 (FN Bureau) On the back of strong demand, India’s manufacturing activities continued to expand in April 2024 but the pace of growth moderated during this period, as per a survey findings published by S&P Global on Thursday. The HSBC India manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 58.8 in April this year from 59.1 in the previous month. A PMI print below 50 means contraction while above it shows expansion in activities. As per the private survey, operating conditions in April this year improved at the second-fastest pace in three-and-a-half years.
Further, it said that firms experienced a sharp upturn in new business intakes, and scaled up production accordingly. The survey said that cost pressures ticked higher in the previous month, though remained historically mild, pushing up charge inflation to the strongest since January. “April’s manufacturing PMI recorded the second fastest improvement in operating conditions in three-an-a-half years, bolstered by strong demand conditions which resulted in a further expansion of output, albeit slightly slower than in March,” said Pranjul Bhandari, Chief India Economist at HSBC.
Bhandari further said, “Improvements in suppliers’ delivery times contributed to increased purchasing activity. Additionally, a positive outlook for the year ahead prompted firms to expand their staffing levels. On the price front, higher costs of raw materials and labour led to a modest uptick in input costs, but inflation remains below the historical average.” The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP (gross domestic product).