India's Manufacturing Activity Hit Three-Month High In March
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Loading... - Ishan Arya
- 03 Apr 2023
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India's manufacturing sector displayed quick expansion in March due to increased productivity and new orders.
However, companies cut jobs for the first time in over a year, according to a private business survey released on Monday (3 April).
Input cost inflation fell, while output recorded the strongest growth since December 2022.
S&P Global's Manufacturing "PMI" rose to 56.4 in March, exceeding February's 55.3, and remained above the 50-point level indicating growth for 21 consecutive months.
"PMI" is short for Purchasing Managers' Index. According to S&P Global, PMI is a survey-based economic indicator designed to provide a timely insight into business conditions.
The job market contracted for the first time in 13 months, but job losses were minimal. Concerns around competitiveness and inflation caused a decline in optimism about future output, hitting an eight-month low.
India's economy, ranked third in Asia, may fare better than others amid a potential global downturn with projected growth rates of 6.9 per cent this fiscal year and 6 per cent in the next.
Overall demand rose last month, per new orders sub-index, with a faster expansion of foreign demand compared to February.
Input cost inflation decreased to the second-lowest level in 2.5 years, but companies did increase output prices (cost to customers) due to higher labour and raw material expenses, which resulted in a rise in the output prices sub-index to 52.0 from 51.8. Read More…
