Informist, Tuesday, Apr 23, 2024

--India Apr flash manufacturing PMI 59.1 vs 59.1 Mar final

--India Apr flash mfg PMI output index 63.2 vs 63.3 Mar final

--India Apr flash services PMI activity index 61.7 vs 61.2 Mar final

--India Apr flash composite PMI output index 62.2 vs 61.8 Mar final

NEW DELHI – Growth in India's private sector expanded at a faster pace in April compared to the previous month. The HSBC Flash India Composite Purchasing Managers' Output Index, compiled by S&P Global, expanded at the fastest pace in close to 14 years, thanks to buoyant demand in both manufacturing and service sectors.

The HSBC Flash India Composite PMI Output Index-–a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors-–rose to 62.2 in April from the final print of 61.8 in March. A Purchasing Managers' Index reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.

"Strong performance in both the manufacturing and services sectors, led by increased new orders, resulted in the highest composite output index since June 2010," Pranjul Bhandari, chief India economist at HSBC, said in a release today. "In particular, services growth accelerated further in April as new orders in both domestic and international markets rose."

The Flash India Services PMI Business Activity Index rose to a three-month high of 61.7 in April, from the final print of 61.2 in March.

Growth in the manufacturing sector remained robust in April even as the rate of expansion moderated slightly from the previous month. The Flash Manufacturing PMI rose to 59.1 in April, the same rate of expansion as the previous month. The HSBC Flash India Manufacturing PMI Output Index was at 63.2 this month, against the final print of 63.3 in March, S&P Global said.

Private sector sales in April expanded at the quickest pace in just under 14 years. Sales in the services sector grew at a faster pace compared with the manufacturing sector, S&P Global said.

Sales were led by international orders this month. At the composite level, new export orders rose at the fastest rate since the series started in September 2014. Service-based companies noted a quicker rate of expansion in exports.

The capacity of manufacturing and services firms was under pressure this month because of sustained increases in new orders, which led to an increase in recruitment. The growth in jobs was stronger in the manufacturing sector, S&P Global said.

Input cost inflation eased across the board, with services companies noting the faster rise. "Anecdotal evidence suggested that labour costs were the main factors behind rising expenses at service providers. At the composite level, the rate of increase was below its long-run average," S&P Global said. Firms passed on the increased input costs to clients this month on the back of strong demand, it added. The rate of inflation was above its long-run average even as the prices charged rose at a lower pace in April.

The business confidence outlook has picked up this month as panellists expect further improvements in demand and productivity over the coming 12 months, S&P Global said. End

Reported by Shubham Rana

Edited by Tanima Banerjee

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