Indian manufacturing activity eased in the month of March, on the account of slower expansions in factory orders and production as well as a renewed decline in new export orders. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 54.0 in March from 54.9 in February.
As per the report, goods producers indicated that new orders continued to increase in March. The rate of expansion eased to a six-month low, but remained marked. The latest report showed a broad stabilisation in headcounts across the manufacturing industry, following three successive months of job shedding. Companies commonly indicated that payroll numbers were sufficient to cope with current requirements.
Besides, there was a renewed decline in new export orders received by Indian goods producers, ending an eight-month sequence of growth. However, the overall rate of reduction was only modest. March data pointed to subdued optimism towards growth prospects among Indian manufacturers, with the overall level of sentiment slipping to a two-year low.
On the inflation front, manufacturers reported another increase in input prices at the end of fiscal year 2021/22. Chemical, energy, fabric, foodstuff and metal costs were all reportedly greater than in February. The overall rate of inflation quickened and outpaced its long-run average, but was the second-slowest in six months. Output prices rose in March as goods producers sought to share part of the additional cost burden with their clients.
