Manufacturing sector on a gallop now
Quantities of purchase increased at the quickest rate since mid-2023, and one that was among the strongest in nearly 13 years, as companies sought to build up stocks in advance of expected improvements in sales
India’s manufacturing sector growth rose to a 16-year high in March on the back of the strongest increase in output and new orders since October 2020.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) hit a 16-year high of 59.1 in March, up from 56.9 in February, on back of strong growth in new orders, output and input stocks and renewed job creation. A reading of above 50 is considered expansion while a score below 50 indicates contraction.
Export orders have increased rapidly since May 2022, the survey said. Quantities of purchase increased at the quickest rate since mid-2023, and one that was among the strongest in nearly 13 years, as companies sought to build up stocks in advance of expected improvements in sales.
On the job front, after leaving payroll numbers broadly unchanged in the previous two months, manufacturers in India took on additional workers in March. The pace of job creation was mild, but the best since September 2023, the survey said.
On the price front, despite remaining modest by historical standards, cost pressures were at their highest in five months. Companies reported having paid more for cotton, iron, machinery tools, plastics and steel.
The overall level of sentiment remained high, but slid to a four-month low on inflation concerns.
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