India's mfg sector growth hits 16-yr high in Mar as new orders jump amid buoyant demand - Hindustan Times
close_game
close_game

India's mfg sector growth hits 16-yr high in Mar as new orders jump amid buoyant demand

PTI |
Apr 02, 2024 11:18 AM IST

India's mfg sector growth hits 16-yr high in Mar as new orders jump amid buoyant demand

New Delhi, India's manufacturing sector growth climbed to a 16-year high in March on the back of the strongest increase in output and new orders since October 2020, amid reports of buoyant demand conditions, a monthly survey said on Tuesday.

HT Image
HT Image

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index surged to a 16-year high of 59.1 in March, from 56.9 in February, reflecting stronger growth of new orders, output and input stocks as well as renewed job creation.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

In Purchasing Managers' Index parlance, a print above 50 means expansion while a score below 50 denotes contraction.

"India's March manufacturing PMI rose to its highest level since 2008. Manufacturing companies expanded hiring in response to strong production and new orders. On the back of strong demand and a slight tightening in capacity, input cost inflation picked up in March," Ines Lam, Economist at HSBC, said.

Manufacturing output rose for the 33rd month running in March, and to the greatest extent since October 2020. Growth quickened across the consumer, intermediate and investment goods sectors.

Inflows of new work strengthened from both domestic and export markets. New export orders increased at the fastest pace 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.

However, customer retention remained a priority for goods producers who raised their charges to the least extent in over a year.

On the outlook for the Indian manufacturing sector, companies remained confident on an average, with 28 per cent forecasting output growth in the year ahead and 1 per cent expecting a contraction.

The overall level of sentiment remained elevated, but slipped to a four-month low as inflation concerns weighed on confidence.

The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

This article was generated from an automated news agency feed without modifications to text.

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, April 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On