Economic Buzz: India Manufacturing PMI Rises to 54.7 In April

2 May 2022 , 02:31 PM

Indias manufacturing sector grew at a faster pace in April as factories raised production in the wake of rising orders. The S&P Global factory Purchasing Managers Index unexpectedly rose to 54.7 in April from 54.0 in March. The expected reading was 53.8. A reading above 50.0 indicates expansion in the sector. Growth gathered momentum in the intermediate and capital goods segments, but there was a slowdown at consumer goods makers. The retreat of COVID-19 restrictions underpinned new order growth in April. The increase in input buying was sharp and the most pronounced since last November. This contributed to a further increase in input inventories among goods producers. Conversely, holdings of finished products continued to fall. There was only a mild increase in employment during April amid negligible capacity pressures among manufacturers. Inflationary pressures intensified in April, owing to rising commodity prices, the Russia-Ukraine war and greater transportation costs. Input prices climbed at the fastest pace in five months, and output charge inflation hit a 12-month high.

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