Mumbai: India’s manufacturing expanded at a slower pace for the second month in a row following a drop in new orders and output, backing further away from a 20-month high hit in February, a survey showed on Monday.
The HSBC Markit Purchasing Managers’ Index based on a survey of 500 companies, fell to 57.2 in April from 57.8 in March. A figure above 50 means activity is expanding and it has been above that level for 13 months.
The data still signalled significant strength in India’s manufacturing sector, underscoring the double-digit gains in official industrial output figures in recent months, the survey said.
“Although this slip indicates that operating conditions improved at a weaker rate during the latest survey period, the latest reading still signalled a considerable strengthening in the health of the industry,” survey compiler Markit said.
“Prices charged for Indian manufacturers rose at a marked pace during April, as firms responded to further growth in their cost burdens in an attempt to defend profit margins.”
Output and new orders indexes remained above 60 and employment showed modest growth in April after stagnating the month before, supported by greater production requirements and accelerating economic growth.