India's manufacturing PMI at 4-month high in April on output & new orders' growth

India’s manufacturing PMI reaches four-month high at 57.2 in April:

India’s manufacturing purchasing manager’s index (PMI) surged to a four-month high of 57.2 in April, according to the S&P Global India Manufacturing PMI report. This figure is an increase from March’s 56.2 PMI, February’s 55.3 PMI, and January’s 53.7 PMI. A reading above 50 indicates an overall increase in output compared to the previous month.

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New orders and production growth accelerate in April:

The report shows that new orders placed with goods producers rose sharply in April, with the quickest pace since December last year. This expansion was due to favourable market conditions, demand strength, and publicity. Factory orders and production also rose at the strongest rates in April so far this year. The creation of more jobs during the month and companies stepping up input purchasing efforts also contributed to this growth.

Input inventories expand as suppliers perform well:

Inventories of inputs also witnessed record expansion during April, supported by a lack of pressure on supplier capacity. The rate of stock accumulation also increased during the month, with 26% of surveyed participants reporting higher production volumes. Despite the surge in purchasing activity, suppliers were able to deliver inputs in a timely manner during April, improving vendor performance to the greatest extent in eight months.

Manufacturers optimistic towards growth prospects:

Overall, manufacturers are optimistic towards growth prospects, with optimism improving from March’s eight-month low. This is due to contracts pending approval, rising client enquiries, marketing initiatives, and evidence of demand resilience. S&P Global had earlier predicted that Indian manufacturers would expect improved customer relations, new product releases, and advertising to support sales and production in FY24.

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