<p> New Delhi: India’s manufacturing activities remained sluggish for the second consecutive month in April, dragged by muted demands and elevated input costs due to the West Asia conflict, as per an industry survey report released by S&P Global on Monday. </p>.<p>The Purchasing Managers’ Index (PMI) for manufacturing witnessed mild recovery rising to 54.7 in April, from a four-year low of 53.9 recorded in the previous month. The April performance was the second-weakest since 2022.</p>.<p>The two key sub-components of the PMI, new orders and output, registered their second worst performance in three-and-a-half years.</p>.<p>A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p>.<p>Disruptions caused by the West Asia conflict led to a surge in input prices for manufacturing. Input costs rose at the sharpest pace in 44 months. The companies partially passed the price on to consumers, leading to the sharpest increase in output charges in six months.</p>.<p>The data is based on a survey conducted among around 400 manufacturing companies.</p>.India's manufacturing growth sees mild recovery in April, Iran war exerts upward pressure on inflation: PMI.<p>“Spillovers from the West Asia conflict are becoming more evident, particularly through inflation: input costs increased at the fastest pace since August 2022, and output prices rose at the quickest rate in six months,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.<p>“Even so, output, new orders (including exports) and employment all grew moderately, pointing to continued resilience in India’s manufacturing sector,” she added.</p>.<p>Higher prices for aluminium, chemicals, electrical components, fuel, leather, petroleum products and rubber, led the jump in input costs. The surveyed companies attributed the hikes to the West Asia conflict. The overall rate of inflation climbed to its highest since August 2022. Subsequently, goods producers lifted their fees to the greatest extent in six months.</p>.<p>Exports was a bright area, with firms welcoming the fastest upturn since last September. New export orders expanded sharply at the start of the first fiscal quarter, with the pace of growth reaching a seven-month high.</p>.<p>Manufacturing firms reported better demand from clients in several countries, including Australia, France, Japan, Kenya, China, Saudi Arabia, the UAE, and the UK.</p>.<p>Despite the challenges, Indian manufacturers remain optimistic towards growth prospects. The overall level of positive sentiment in April was its second-highest since November 2024.</p>.<p>“Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved,” S&P Global noted in the monthly survey report.</p>.<p>Manufacturers recruited additional workers at the start of the first fiscal quarter. Moreover, the rate of job creation was marked and the strongest in 10 months. “Hiring growth reflected expansion plans, according to anecdotal evidence,” S&P Global said. </p>
<p> New Delhi: India’s manufacturing activities remained sluggish for the second consecutive month in April, dragged by muted demands and elevated input costs due to the West Asia conflict, as per an industry survey report released by S&P Global on Monday. </p>.<p>The Purchasing Managers’ Index (PMI) for manufacturing witnessed mild recovery rising to 54.7 in April, from a four-year low of 53.9 recorded in the previous month. The April performance was the second-weakest since 2022.</p>.<p>The two key sub-components of the PMI, new orders and output, registered their second worst performance in three-and-a-half years.</p>.<p>A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p>.<p>Disruptions caused by the West Asia conflict led to a surge in input prices for manufacturing. Input costs rose at the sharpest pace in 44 months. The companies partially passed the price on to consumers, leading to the sharpest increase in output charges in six months.</p>.<p>The data is based on a survey conducted among around 400 manufacturing companies.</p>.India's manufacturing growth sees mild recovery in April, Iran war exerts upward pressure on inflation: PMI.<p>“Spillovers from the West Asia conflict are becoming more evident, particularly through inflation: input costs increased at the fastest pace since August 2022, and output prices rose at the quickest rate in six months,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.<p>“Even so, output, new orders (including exports) and employment all grew moderately, pointing to continued resilience in India’s manufacturing sector,” she added.</p>.<p>Higher prices for aluminium, chemicals, electrical components, fuel, leather, petroleum products and rubber, led the jump in input costs. The surveyed companies attributed the hikes to the West Asia conflict. The overall rate of inflation climbed to its highest since August 2022. Subsequently, goods producers lifted their fees to the greatest extent in six months.</p>.<p>Exports was a bright area, with firms welcoming the fastest upturn since last September. New export orders expanded sharply at the start of the first fiscal quarter, with the pace of growth reaching a seven-month high.</p>.<p>Manufacturing firms reported better demand from clients in several countries, including Australia, France, Japan, Kenya, China, Saudi Arabia, the UAE, and the UK.</p>.<p>Despite the challenges, Indian manufacturers remain optimistic towards growth prospects. The overall level of positive sentiment in April was its second-highest since November 2024.</p>.<p>“Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved,” S&P Global noted in the monthly survey report.</p>.<p>Manufacturers recruited additional workers at the start of the first fiscal quarter. Moreover, the rate of job creation was marked and the strongest in 10 months. “Hiring growth reflected expansion plans, according to anecdotal evidence,” S&P Global said. </p>