Manufacturing activity slowed to a four-month low in April as new orders remained sluggish, reinforcing expectations of a cut in interest rates to boost expansion.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) -a key indicator of manufacturing performance -fell from 52.4 in March to 50.5 in April. The latest figure pointed to the weakest improvement in business conditions in the current four-month sequence of above-50 readings.The 50 point mark separates expansion from contraction.
The data indicated that Indian manufacturers raised output at a slower pace in April as new business inflows were broadly unchanged during the month.
“The upturn in new export orders was sustained, although growth was at a six-month low. There were divergences with regards to stock levels, with holdings of finished goods continuing to fall, while pre-production inventories rose again,“ the survey showed.
The industrial sector has remained sluggish for a combination of factors, including muted investment but data in recent months had triggered hopes of a turnaround. After three consecutive months of a decline, industrial output had grown by 2% in February .
On the price front, input costs increased at the fastest rate in 11 months, whereas charge inflation eased since March. Manufacturers saw incoming new orders broadly stagnate in April, following three consecutive months of growth.In contrast to the picture for total new business, new work from abroad continued to increase. Nonetheless, new export orders expanded at the slowest pace since last October.
In spite of the stagnation in new work, goods production increased in April. The rate of expansion was only slight and softened since March. April saw manufacturing employment in India remain broadly unchanged, a trend that has been evident for almost two years, according to the survey.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) -a key indicator of manufacturing performance -fell from 52.4 in March to 50.5 in April. The latest figure pointed to the weakest improvement in business conditions in the current four-month sequence of above-50 readings.The 50 point mark separates expansion from contraction.
The data indicated that Indian manufacturers raised output at a slower pace in April as new business inflows were broadly unchanged during the month.
“The upturn in new export orders was sustained, although growth was at a six-month low. There were divergences with regards to stock levels, with holdings of finished goods continuing to fall, while pre-production inventories rose again,“ the survey showed.
The industrial sector has remained sluggish for a combination of factors, including muted investment but data in recent months had triggered hopes of a turnaround. After three consecutive months of a decline, industrial output had grown by 2% in February .
On the price front, input costs increased at the fastest rate in 11 months, whereas charge inflation eased since March. Manufacturers saw incoming new orders broadly stagnate in April, following three consecutive months of growth.In contrast to the picture for total new business, new work from abroad continued to increase. Nonetheless, new export orders expanded at the slowest pace since last October.
In spite of the stagnation in new work, goods production increased in April. The rate of expansion was only slight and softened since March. April saw manufacturing employment in India remain broadly unchanged, a trend that has been evident for almost two years, according to the survey.
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