Fashion
India’s PMI rises to 54.7 in April; highest in 4 years: S&P
April data indicated mild recoveries in growth of new business intakes and production among Indian manufacturers, though rates of increase remained the second weakest since 2022. The two largest components of the PMI, new orders and output, both rose compared to March but continued to trail levels seen over the past three-and-a-half years.
India’s manufacturing purchasing managers’ index (PMI) rose to 54.7 in April from 53.9, signalling modest growth but the second-slowest improvement in nearly four years.
Exports remained strong, while rising input costs, linked to the Middle East conflict pushed inflation higher.
Despite pressures, output, orders and employment grew moderately, reflecting sector resilience.
Exports emerged as a bright spot, with new export orders expanding sharply and registering the fastest growth since last September. Firms reported improved demand from markets including Australia, France, Japan, Kenya, China, Saudi Arabia, the UAE and the UK.
Despite this, rising cost pressures weighed on overall sentiment. Companies noted that the ongoing Middle East conflict exerted upward pressure on inflation. Input costs rose at the fastest pace since August 2022, driven by higher prices for aluminium, chemicals, electrical components, fuel, leather, petroleum products and rubber. Consequently, output charges increased at the quickest rate in six months.
Survey participants said advertising and demand resilience supported sales and production, but growth was constrained by competitive pressures, geopolitical uncertainties and client hesitancy in approving pending orders.
Manufacturers continued to purchase additional raw materials and semi-finished goods, though the pace of expansion slowed to the joint-weakest in nearly two-and-a-half years. Input inventories rose at the slowest rate in close to five years, as firms attempted to maintain lean stock levels amid subdued sales. Finished goods inventories increased slightly for the first time in six months.
Employment trends remained positive, with firms adding workers at the strongest pace in ten months, supported by expansion plans. Meanwhile, supplier performance improved significantly, with shorter input lead times reflecting better coordination with suppliers.
Although overall business optimism eased slightly from March, it remained near its highest level since November 2024. Confidence was supported by expectations of improved marketing outcomes and approvals of pending projects.
Pranjul Bhandari, chief India economist at HSBC, said the rise in PMI reflects continued resilience in the manufacturing sector despite inflationary pressures stemming from geopolitical tensions.
Fibre2Fashion News Desk (CG)