Manufacturing PMI increases from 56.4 in March to 57.2 in April

Manufacturing PMI increased to 57.2 in April from 56.4 in March, indicating the fastest improvement in the health of the sector in year-to-date, according to S&P Global India Manufacturing Purchasing Managers’ Index. Except for the supplier delivery times, all sub-components of the PMI made a contribution to the stronger figures.  

Factory order and production rose at the strongest rates in 2023 so far. More jobs were created and more companies stepped up input purchasing owing to stock-replenishment efforts, it said. 

Economics Associate Director at S&P Global Market Intelligence Pollyanna De Lima, said, "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.”

De Lima said that Indian manufacturers have abundant opportunities to keep powering ahead. Capacities were expanded through job creation and input buying was lifted and pre-production inventories rose at a record rate, she said. 

“At the same time, stocks of finished goods need replenishing as some orders were reportedly fulfilled from warehoused goods. Manufacturers are certainly upbeat towards growth prospects, with optimism improving from March's eight month low on the back of contracts pending approval, rising client enquiries, marketing initiatives and evidence of demand resilience,” said De Lima. 

New orders placed rose at the quickest since December, output increased at a sharp rate that was most pronounced in four months, and manufacturers added to their input inventories in April. Buying levels expanded for the twenty-second successive month as well as expanded at a sharp rate that was strongest since February 2021. 

Goods producers recorded a marginal increase in outstanding business volumes. The report said that firms sought to expand capacities by taking on additional workers. 

“Indian manufacturers were confident that production volumes would be higher in 12 months' time, amid demand resilience, client enquiries, orders pending approval and marketing efforts. Moreover, the overall level of positive sentiment rose since March,” the report added. 

Also read: Manufacturing PMI hits 3-month high; increases to 56.4 in March from February’s 55.3