India's manufacturing sector continued to show a stellar performance, with the HSBC India PMI climbing to a 16-year high on the back of the strongest increases in output and new orders since October 2020, parallel to the second-sharpest upturn in input inventories in the history of the survey. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 59.1 in March as against 56.9 in February.
The report noted that growth of new orders accelerated to the quickest in nearly three-and-a-half years during March, amid buoyant demand conditions. Inflows of new work strengthened from both domestic and export markets with better sales to Africa, Asia, Europe and the US. New export orders increased at the fastest pace since May 2022.
Besides, quantities of purchases increased at the quickest rate since mid-2023, and one that was among the strongest in nearly 13 years, as companies sought to build-up stocks in advance of expected improvements in sales. Subsequently, inventories of purchases increased to the second-greatest extent in the survey history (behind May 2023). Capital goods was the brightest area regarding both input buying and stockpiling.
After leaving payroll numbers broadly unchanged in the previous two months, manufacturers in India took on additional workers in March. The pace of job creation was mild, but the best since September 2023. There was a mild pick-up in cost pressures during March, but customer retention remained a priority for goods producers who raised their charges to the least extent in over a year.
