Consumer goods shows slowest growth, hints at poor demand
Indian manufacturing companies reported rising production levels in April.
MUMBAI: After registering an impressive growth in March, India’s manufacturing sector grew at a slower pace in April as new orders slowed down, according to a survey done by HSBC. The HSBC India Purchasing Managers Index (PMI) fell to 51.3 in April from 52.1 recorded in March indicating weaker operating conditions across the sectors. While the rate of expansion eased during April, the manufacturing PMI stood above the 50 level mark for the eighteenth consecutive month.
A reading above 50 indicates expansion in activities while a reading below 50 indicates contraction. The growth was strongest in the capital goods sector while it was slowest in the consumer goods sector indicating subdued demand environment. A highlight of the latest survey was the strong external market with the rise in new export business remaining solid. The survey said that the demand from external markets remained strong as the level of new export order increased at a solid pace that was unchanged since April. Companies reported greater inflows of new business from key export clients particularly from those operating in Asia.
“However, we are yet to see growth leading to any meaningful job creation, as the index measuring employment has shown little change to staff numbers since the beginning of 2014,” said Pollyanna De Lima, economist at Markit. In April, companies also maintained a cost cautious approach to hiring. “Job losses were reported for the second time in the year to date. Nevertheless, the rate of job shedding was fractional overall as the vast majority of panelists signalled no change in employment levels,” the survey said.
( Source : dc correspondent )
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