Factory orders, production rise at slowest rates in 8 months in April: PMI


India’s manufacturing sector activity used to be in large part flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis, a monthly survey said on Monday.

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) used to be at 55.5 in April, little changed from March’s reading of 55.4.

In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“The PMI results for April showed a further slowdown in rates of growth for new orders and output, either one of which eased to eight-month lows amid the intensification of the COVID-19 crisis,” said Pollyanna De Lima, Economics Associate Director at IHS Markit.

Lima also famous that “the surge in COVID-19 cases could dampen demand further when firms’ financials are already susceptible to the hurdle of rising global prices.”

The day by day COVID-19 cases in India showed a slight dip with 3,68,147 new coronavirus infections being reported in a day, taking the complete tally of cases to 1,99,25,604, according to the Union Health Ministry data up to date on Monday.

“The headwinds facing manufacturers cannot be ignored, then again. The surge in COVID-19 cases could dampen demand further when firms’ financials are already susceptible to the hurdle of rising global prices,” Lima said.

On the prices front, survey participants also signalled a steep increase in input costs, the quickest since July 2014, and upward revisions to selling prices.

“April saw the steepest increase in input costs for just about seven years drive the sharpest upturn in output charges since October 2013. Data for the coming months will be important at verifying if client demand is resilient to these challenges or whether producers must further absorb cost burdens themselves to protected new work,” Lima said.

The survey, then again, famous that while output and sales increased at the slowest rates since final August because of an intensification of the COVID-19 crisis, there used to be a faster upturn in international orders.

New export orders increased for the eighth consecutive month in April and at the fastest rate since October 2020. The upward thrust used to be associated with a pick-up in international demand for Indian goods, the survey said.

On the job front, even if manufacturing employment continued to fall, the rate of contraction recorded in April used to be marginal and the weakest in the current 13-month sequence of job shedding, it famous.

(Only the headline and picture of this outline may have been reworked by the Commerce Standard staff; the remainder of the satisfied is auto-generated from a syndicated feed.)

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