Manufacturing conditions in India improves for fourth straight month in April: Nikkei India Mfg PMI

New Delhi, May 2 (KNN) The manufacturing conditions in India improved for the fourth straight month in April said Nikkei India Manufacturing Purchasing Managers’ Index adding that manufacturing jobs rose for the second consecutive month in April.

The Manufacturing PMI remained unchanged from March at 52.5 in April. A reading above 50 indicates economic expansion, while one below 50 points toward contraction.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at IHS Markit and author of the report, said,  “Buoyant domestic demand coupled with sustained growth of new orders from abroad boosted the upturn in total new business received by Indian manufacturers in April. Having recovered at the beginning of the year from December’s demonetisation-related contraction, growth of order books has gathered pace in each month since.”

“Job seekers in the sector were presented with further employment opportunities, while firms also continued to engage in purchasing activity and scaled up production again,” she said.

Scratching beneath the surface we can see that consumers were the key drivers of growth as consumer goods producers registered by far the steepest expansions in both production and new orders, Lima added.

The report highlighted that the amount of raw materials and semi-finished goods purchased by Indian manufacturers rose in April, in line with the trend recorded throughout the past four months. The rate of expansion was, however, modest and weakened from that seen in March.

Suppliers’ delivery times lengthened in April, amid reports of lorry strikes. The deterioration in vendor performance was only marginal, but reversed the improvement recorded in March. Purchasing costs increased for the nineteenth consecutive month in April, with panellists reporting higher prices paid for metals, chemicals and plastics.

Finally, goods producers were at their most optimistic since last November, with capacity expansion plans, new product developments, greater advertising and favourable market conditions expected to underpin output growth in the year ahead, the report added. (KNN Bureau)