Manufacturing activity gathered pace in March on the back of new orders bringing some cheer for the sluggish sector. The HSBC India Purchasing Managers Index, compiled by Markit, rose to 52.1 in March up from 51.2 in February . The 50-point mark divides expansion from contraction.
Output rose for the seventeenth consecutive month in March and at a solid pace that was faster than in February .The latest increase in production was broad-based by sector with growth signalled by consumer, intermediate and investment goods companies.
Underpinning the expansion in output was a quicker rise in new order flows.
March PMI data pointed to an overall improvement in manufacturing conditions across India. A stronger increase in new orders led firms to boost production levels and raise buying activity , the survey said. The data, which is an advance indicator, augurs well for the manufacturing sector that has been reeling under the burden of a slowdown, sluggish investment and high interest rates. Other data show that the sector still remains sluggish.
Although solid, the overall growth rate moderated to the weakest in 10 months.
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