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Informist, Monday, May 4, 2026

 

--India April manufacturing PMI 54.7 vs 53.9 in March

 

NEW DELHI – India's manufacturing sector activity recovered in April from a near four-year low in March but the war in West Asia continued to hurt demand and push up inflation, S&P Global said Monday. The HSBC India Manufacturing Purchasing Managers' Index rose to 54.7 in April from 53.9 in March.

 

Despite the uptick, the manufacturing PMI print for April was the second slowest since June 2022. The final manufacturing PMI print for April was lower than the flash figure of 55.9, data for which was released on Apr. 23. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction. 

 

"Spillovers from the Middle East 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," Pranjul Bhandari, chief India economist at HSBC, said in a release.

 

New orders received and factory output, the two largest sub-components of the Purchasing Managers' Index, rose from March but trailed readings seen in at least three-and-a-half years, S&P Global, which compiles the purchasing managers' indices, said in a release. The impact of the West Asia war was also seen with manufacturing firms reporting higher raw material prices, including aluminium, chemicals, fuel, leather, and petroleum products.

 

"Panellists often attributed hikes to the Middle East war," S&P Global said. "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."

 

New export orders expanded sharply at the start of the financial year, with the pace of growth at a seven-month high, S&P Global said. Manufacturing companies saw better demand from countries such as Australia, France, Japan, Kenya, mainland China, Saudi Arabia, the United Arab Emirates, and the UK.

 

Advertising and demand resilience supported sales and production, according to survey participants, but the growth was dented by competitive conditions owing to the war in West Asia and a reluctance among clients to approve pending quotes.

 

The manufacturers saw a marginal increase in outstanding business volumes, S&P Global said. This did not stop business owners from hiring additional workers last month. "Moreover, the rate of job creation was marked and the strongest in ten months," the release said. In fact, the growth in hiring reflected the manufacturers' expansion plans, according to anecdotal evidence.

Indian manufacturers remained optimistic towards growth prospects, S&P Global said. The level of positive sentiment slipped since March but was at its second-highest mark since November 2024. "Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved," the release said.  End

 

Reported by Shweta and Shubham Rana

Edited by Vandana Hingorani

 

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