India’s private sector activity accelerated in April, driven by stronger demand conditions, capacity expansion, increased new orders, and technology investments, according to the HSBC Flash India PMI Composite Output Index released on Thursday.
The seasonally adjusted index, which measures the month-on-month change in the combined output of India’s manufacturing and services sectors, rose to 58.3 in April from 57.0 in March.
New orders expanded at a faster pace compared to March, marking a historically strong rate of growth.
Employment across the private sector also increased, with the pace of job creation reaching a 10-month high, the survey showed.
“Private sector activity accelerated after easing in March amid disruptions linked to the Middle East conflict. Manufacturing led the upturn, with faster growth in output and new orders,” said Pranjul Bhandari, Chief India Economist at HSBC.
The survey indicated that firms are building buffer stocks to manage uncertainties related to supply-side disruptions. Finished goods and input inventories rose alongside increased purchasing activity.
“Input cost pressures remained elevated, and firms passed on part of the increase through higher selling prices,” Bhandari added.
While inflation remained historically elevated, it eased compared to the previous month, largely due to a moderation in the services sector.
According to the PMI report compiled by S&P Global, manufacturing led the rebound, with stronger increases in output and sales, although price pressures intensified in the sector.
Goods producers recorded faster growth in new orders and output compared to services, with their respective indices rising by more than three points. Services firms also saw growth, though at a more moderate pace.
Export trends remained mixed. Manufacturing firms recorded the fastest expansion in export orders in nine months, while services firms saw the weakest growth in over a year, partly attributed to the ongoing Middle East conflict.
At the composite level, new export business rose at a slower pace than in March, the report added.
— IANS
