The seasonally adjusted HSBC Purchasing Managers’ Index (PMI) – a headline index designed to measure the overall health of the manufacturing sector – posted 54.9 in April, little-changed from 54.7 in March and signalling a solid improvement in operating conditions.
“A combination of improved client demand and good quality products led to a further increase in new business at Indian manufacturers during April. Moreover, the rate of expansion was considerable, and faster than in March. Growth in new export orders also quickened during the month, and was marked.
Although manufacturing output increased, the rate of expansion slowed fractionally, and was the weakest in 2012 so far. Respondents indicated that higher new orders had led to the rise in output, but power cuts had prevented firms from increasing production at a faster,” a press release on HSBC Purchasing Managers' index, compiled by Markit states.
The HSBC India Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 500 manufacturing companies.
The panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on industry contribution to Indian GDP. Survey responses reflect the change, if any, in the current month compared to the previous month based on data collected mid-month.
For each of the indicators the ‘Report’ shows the percentage reporting each response, the net difference between the number of higher/better responses and lower/worse responses, and the ‘diffusion’ index. This index is the sum of the positive responses plus a half of those responding ‘the same’.