New Delhi: Activity in India’s manufacturing sector was largely flat in April, as growth rates in new orders and production fell to their lowest level in eight months amid the intensifying COVID-19 crisis, according to a monthly survey Monday.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers Index (PMI) stood at 55.5 in April, little change from the March reading of 55.4.
In PMI parlance, an impression above 50 means expansion while a score below 50 indicates contraction.
“The April PMI results showed a further slowdown in the growth rates of new orders and production, both of which fell to their lowest level in eight months amid the intensifying COVID crisis. 19, “said Pollyanna De Lima, associate director of economics at IHS. Note it.
Lima also noted that “the surge in COVID-19 cases could further dampen demand as business financial services are already sensitive to the obstacle of rising global prices.”
Daily cases of COVID-19 in India showed a slight decline with 3.68147 new coronavirus infections reported in one day, bringing the total of cases to 1.99,25,604, according to data from the Ministry of Health. Union updates Monday.
“The headwinds facing manufacturers, however, cannot be ignored. The surge in COVID-19 cases could further dampen demand as corporate finances are already sensitive to the hurdle of rising global prices,” he said. declared Lima.
On the price front, survey participants also reported a sharp increase in input costs, the fastest since July 2014, and upward revisions in selling prices.
“In April, the largest increase in input costs in nearly seven years resulted in the largest increase in production costs since October 2013. Data for the coming months will be important in verifying whether customer demand is resisting these challenges or whether producers will still have to absorb the costs themselves to get new work, ”said Lima.
The survey, however, noted that while production and sales grew at the slowest pace since last August due to the intensifying COVID-19 crisis, there was a faster recovery in international orders.
New export orders rose for the eighth consecutive month in April and at the fastest pace since October 2020. The rise was associated with a recovery in international demand for Indian products, according to the survey.
On the employment front, although manufacturing employment continued to decline, the rate of contraction recorded in April was marginal and the weakest in the current 13-month streak of job cuts, a- he noted.