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India#39;s manufacturing PMI in April remains stable at 55.5

India#39;s manufacturing PMI in April remains stable at 55.5
May 03
13:29 2021

In March, manufacturing Purchasing Managers’ Index (PMI) was at a seven-month low of 55.4, according to data from IHS Markit.

Manufacturing (Image: Shutterstock)

Manufacturing (Image: Shutterstock)

India’s manufacturing PMI remains stable in April at 55.5, as economic conditions in India’s manufacturing sector remained favourable during the month.

In March, manufacturing Purchasing Managers’ Index (PMI) was at a seven-month low of 55.4, according to data from IHS Markit.

Manufacturing PMI of above 50 indicates expansion, while a score of below 50 indicates contraction.

Companies scaled up production in line with a further improvement in demand, the survey said.

“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-19 crisis. Still, the increases were strong by historical standards and the survey revealed other positive news,” said Pollyanna De Lima, Economics Associate Director at IHS Markit.

The survey, however, noted that while output and sales increased at the slowest rates since last August due to an intensification of the COVID-19 crisis, there was a faster upturn in international orders.

New export orders increased for the eighth consecutive month in April and at the fastest rate since October 2020. The rise was associated with a pick-up in international demand for Indian goods, the survey said.

On the job front, although manufacturing employment continued to fall, the rate of contraction recorded in April was marginal and the weakest in the current 13-month sequence of job shedding, it noted.

(With inputs from PTI)

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