India's Manufacturing Output Accelerates in March

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, April 2, 2015, 12:09 [IST]

India's manufacturing output accelerated in March a release from the HSBC PMI for the month of March showed.

"March PMI data pointed to an overall improvement in manufacturing operating conditions across India. A stronger increase in new orders led firms to boost production levels and raise buying activity. Despite this, payroll numbers were unchanged over the month as an increase in average cost burdens deterred firms from hiring additional workers," a HSBC PMI release stated.

The readings showed an acceleration to 52.1 for the month of March as compared to 51.2 in February, highlighted a further improvement in the health of India's manufacturing economy. That said, the average reading for the first three months of 2015 was lower than seen in the final three months of 2014.

Underpinning the expansion in output was a quicker rise in new order flows. According to survey participants, demand conditions improved. Sub-sector data highlighted growth across the three monitored categories. Continuing the trend that started in October 2013, new export orders increased in March.

Commenting on the India Manufacturing PMI Survey, Pollyanna De Lima, Economist at Markit said: "Momentum is building in manufacturing as the sector begins to build up a head of steam. Stronger expansions of output, new orders and stocks of purchases all contributed to a higher PMI reading in March."

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