April factory orders, output rise at slowest rate in 8 mths

New Delhi, May 3

India’s manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the Covid crisis, a monthly survey said on Monday.

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, little changed from March’s reading of 55.4.

“The PMI results for April showed a further slowdown in rates of growth for new orders and output, both of which eased to eight-month lows amid the intensification of the Covid crisis,” said Pollyanna De Lima, Economics Associate Director at IHS Markit.

Steep increase in input costs

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• The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, little changed from March’s reading of 55.4
• In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction
• On the prices front, survey participants also signalled a steep increase in input costs, the quickest since July 2014, and upward revisions to selling prices

Lima also noted “the surge in Covid cases could dampen demand further when firms’ financials are already susceptible to the hurdle of rising global prices.”

“The headwinds facing manufacturers cannot be ignored, however. The surge in Covid cases could dampen demand further when firms’ financials are already susceptible to the hurdle of rising global prices,” Lima said. — PTI