02 May 2017 16:55 IST

Manufacturing PMI rises to 52.5 in April

... says the Nikkei India Manufacturing Purchasing Managers’ Index

Factory output increased for the fourth straight month in April, led by strong growth in new orders, according to a monthly private survey.

The Nikkei India Manufacturing Purchasing Managers’ Index stood at 52.5 in April, the same level as in March.

A reading above 50 on the index denotes expansion while that less than 50 indicates contraction.

“Slower increases in output, stocks of purchases and employment were offset by stronger growth of new orders and lengthening delivery times,” said Nikkei in a release on Tuesday.

The rate of growth of new orders was at a six-month high in April and output increased in each of the three monitored sectors, led by consumer goods.

“Overall, the rate of expansion was solid, but softened slightly since March,” said the release.

Greater output requirement and expectation of further improvements in demand led to job creation during April. However, the rate of increase in headcounts was only slight and little-changed from that registered in March, the survey showed.

“Buoyant domestic demand coupled with sustained growth of new orders from abroad boosted the upturn in total new business received by Indian manufacturers in April,” said Pollyanna De Lima, Economist at IHS Markit and author of the report, adding that the outlook appears encouraging too, with output expected to remain on an upward trajectory amid reports of planned capacity expansions, new product launches, aggressive marketing campaigns and an improving economic scenario.

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