India's manufacturing PMI expands to 54.7 as demand picks up faster

Due to stronger gains in output and factory orders, as well as renewed expansion in overseas sales, India's manufacturing sector grew faster in April than in previous months. In April, the S&P Global India Manufacturing Purchasing Managers' Index (PMI) increased from 54 to 54.7. As a result of the easing of Covid restrictions, demand has remained strong. However, the index was somewhat lower than February's 54.9.

For the tenth month in a row, the PMI figures showed an improvement in overall operational conditions. A number above 50 indicates expansion, whereas a score below 50 indicates contraction.

Meanwhile, inflationary pressures grew as global commodity prices rose in response to Russia's invasion of Ukraine. Input costs rose at their quickest rate in five months, while output charge inflation reached a 12-month high.

As businesses continue to share extra cost burdens with their clients, this escalation of pricing pressures could decrease demand.

According to the survey, there was a modest increase in employment in April as capacity pressures among Indian manufacturers remained minor, as seen by a marginal increase in backlogs. It went on to say that the vast majority of survey respondents said their workforces had remained constant since March.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.