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Informist, Wednesday, Apr. 2, 2025

 

--India Mar manufacturing PMI 58.1 vs 56.3 in Feb 
 

NEW DELHI - India's manufacturing sector activity in March expanded at the joint-fastest pace in nine months because of robust demand even as export growth moderated during the month, S&P Global said on Wednesday. The HSBC India Manufacturing Purchasing Managers' Index rose to 58.1 in March, the highest since June. The July manufacturing PMI print was also 58.1.

 

The final manufacturing PMI print for March is higher than February's 56.3, and also above the flash figure of 57.6 for last month, data for which was released on Mar. 24. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction.

 

Manufacturing sector growth recovered the ground lost in February as a faster rise in total sales underpinned a sharper increase in output, S&P Global said. "March's acceleration came despite a mild slowdown in international order growth. Buoyant demand led companies to tap into their inventories to meet increased client appetite, resulting in the most rapid decline in finished goods stocks since January 2022," S&P Global said.

 

Manufacturing PMI averaged 57.4 in Jan-Mar, higher than Oct-Dec average of 56.8, indicating a pick-up in economic activity. The rise in manufacturing sector activity would bring comfort to the Reserve Bank of India's Monetary Policy Committee, which is expected to lower interest rates next week, having cut the repo rate by 25 basis points to 6.25% in February. 

 

Manufacturing firms saw the fastest rise in sales since July, with companies remarking on positive customer interest, favourable demand conditions and successful marketing initiatives, S&P Global said. Thanks to the robust demand, firms scaled up production at the fastest pace in eight months.

 

Although new export orders continued to increase strongly in March, the pace of growth retreated to a three-month low. Where international sales expanded, panellists cited gains from Asia, Europe and the West Asia, S&P Global said. Employment rose at solid rate in March, while cost pressures rose further, S&P Global said. Firms incurred higher costs on copper, electronic items, leather, Liquefied petroleum gas, and rubber. 

 

The overall rate of inflation accelerated to a three-month high, but was well below its long-run average, S&P Global said. "Conversely, there was a softer increase in prices charged for Indian goods. March's rise was moderate and the weakest in exactly one year."  End

 

Reported by Shubham Rana

Edited by Vandana Hingorani

 

 

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