NEW DELHI: Manufacturing activities in India accelerated to a four-month high in April, from new orders and favourable operating conditions. Factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock replenishment efforts, according to S&P India Manufacturing PMI.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index grew to 57.2 in April from 56.4 in March. It indicated the fastest improvement in the health of the sector in the year-to-date (calendar). Supported by a lack of pressure on supplier capacity, there was a record expansion in inventories of inputs in April, it said.
Pollyanna De Lima, Economics Associate Director, S&P Global Market Intelligence, said, “Reflecting a robust and quicker expansion in new orders, production growth took another step forward in April. Companies also benefited from relatively mild price pressures, better international sales and improving supply chain conditions”.
New orders placed with goods producers rose at the quickest pace since last December. The rate of expansion was sharp and above its long-run average, according to the statement. According to panel members, the upturn was supported by favourable market conditions, demand strength and publicity.
“It seems like Indian manufacturers have abundant opportunities to keep powering ahead. Besides seeing the strongest inflow of new work in 2023 so far, capacities were expanded through job creation, input buying was lifted and pre-production inventories rose at a record rate,” Pollyanna De Lima said.
The S&P Global statement said robust new business growth and an associated increase in production requirements urged manufacturers to add to their input inventories in April. The rate of stock accumulation climbed to a survey peak. “Manufacturers are certainly upbeat towards growth prospects, with optimism improving from March’s eight-month low on the back of contracts pending approval, rising client enquiries, marketing initiatives and evidence of demand resilience”, the economics associate director said.
S&P said despite the surge in purchasing activity, suppliers were able to deliver inputs in a timely manner during April. Vendor performance improved to the greatest extent in eight months, though only slightly overall. Indian manufacturers were confident that production volumes will be higher in 12 months’ time amid demand resilience, client enquiries, orders pending approval and marketing efforts. Moreover, the overall level of positive sentiment rose since March, according to the S&P report. (ANI)