<p>New Delhi: India’s manufacturing output growth dipped to the lowest level in four years in March, as the ongoing West Asia conflict led to spike in costs and hit demands, as per an industry survey conducted by S&P Global.</p><p>Purchasing Managers’ Index (PMI) for manufacturing fell to 53.9 in March, from 56.9 recorded in the previous month. The March PMI level was the lowest since June 2022, and below its long-run average of 54.2.</p><p>A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p><p>The two largest sub-components of the PMI, new orders and output, rose at the slowest rates since mid-2022, S&P Global said in its monthly report released on Thursday. </p><p>As per the survey conducted among around 400 firms across the country, the manufacturing activities during the month was hit due to the challenging market conditions, cost pressures and the war in West Asia.</p><p>“Disruptions linked to the conflict in West Asia are reverberating through the global economy and weighing on Indian manufacturers,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.India's services sector activity eases in December amid softer expansion in new business: PMI.<p>“Output and new orders slowed noticeably, signalling softer demand and greater uncertainty. Meanwhile, input costs rose sharply across a broad range of items, including aluminium, chemicals and fuels,” said Bhandari.</p><p>For now, firms appear to be absorbing much of the </p><p>increase, keeping output prices relatively contained, she added.</p><p>Input price rose at the sharpest pace in over three-and-a-half years. Aluminium, chemicals, fuel, jute, leather, fabric, oil, rubber and steel led the surge in price, largely due to global supply-chain disruption.</p><p>However, the companies mostly absorbed added expenses, as indicated by a modest uptick in selling charges. The rate of output price inflation receded to a two-year low, curbed by customer-retention efforts and attempts to secure new clients at some firms.</p><p>Pre-production inventories accumulation in March was the lowest in 40 months. However, it was above its long-run average. On the other hand, holdings of finished products decreased during March, as firms used warehoused products to meet order intakes.</p><p>The surveyed firms signalled a decline in outstanding business volumes for the first time in close to a year-and-a-half. “Underlying data indicated that additional recruitment and a softer increase in new orders facilitated backlog clearances,” S&P Global said. </p>
<p>New Delhi: India’s manufacturing output growth dipped to the lowest level in four years in March, as the ongoing West Asia conflict led to spike in costs and hit demands, as per an industry survey conducted by S&P Global.</p><p>Purchasing Managers’ Index (PMI) for manufacturing fell to 53.9 in March, from 56.9 recorded in the previous month. The March PMI level was the lowest since June 2022, and below its long-run average of 54.2.</p><p>A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p><p>The two largest sub-components of the PMI, new orders and output, rose at the slowest rates since mid-2022, S&P Global said in its monthly report released on Thursday. </p><p>As per the survey conducted among around 400 firms across the country, the manufacturing activities during the month was hit due to the challenging market conditions, cost pressures and the war in West Asia.</p><p>“Disruptions linked to the conflict in West Asia are reverberating through the global economy and weighing on Indian manufacturers,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.India's services sector activity eases in December amid softer expansion in new business: PMI.<p>“Output and new orders slowed noticeably, signalling softer demand and greater uncertainty. Meanwhile, input costs rose sharply across a broad range of items, including aluminium, chemicals and fuels,” said Bhandari.</p><p>For now, firms appear to be absorbing much of the </p><p>increase, keeping output prices relatively contained, she added.</p><p>Input price rose at the sharpest pace in over three-and-a-half years. Aluminium, chemicals, fuel, jute, leather, fabric, oil, rubber and steel led the surge in price, largely due to global supply-chain disruption.</p><p>However, the companies mostly absorbed added expenses, as indicated by a modest uptick in selling charges. The rate of output price inflation receded to a two-year low, curbed by customer-retention efforts and attempts to secure new clients at some firms.</p><p>Pre-production inventories accumulation in March was the lowest in 40 months. However, it was above its long-run average. On the other hand, holdings of finished products decreased during March, as firms used warehoused products to meet order intakes.</p><p>The surveyed firms signalled a decline in outstanding business volumes for the first time in close to a year-and-a-half. “Underlying data indicated that additional recruitment and a softer increase in new orders facilitated backlog clearances,” S&P Global said. </p>