India Factory Growth Revised Lower In April

(RTTNews) - India's manufacturing activity logged the second-weakest growth in four years amid soaring inflationary pressures caused by the impact of the Middle East War, final survey data from S&P Global showed on Monday.

The HSBC manufacturing purchasing managers' index rose to 54.7 in April from 53.9 in March. The flash score was 55.9. A reading above 50 indicates expansion in the sector. Nonetheless, this was the second-weakest expansion since 2022.

The survey highlighted that demand resilience supported sales and production but that growth was hampered by competitive conditions, the war in the Middle East, and reluctance among clients to approve pending quotes.

New export orders grew at the fastest pace in seven months on the back of better demand from Australia, France, Japan, Kenya, mainland China, Saudi Arabia, the UAE, and the UK.

On the price front, input price inflation accelerated to the highest since August 2022 amid higher prices for aluminum, chemicals, electrical components, fuel, leather, petroleum products, and rubber due to the impact of the Middle East crisis. Consequently, selling price inflation accelerated to a 6-month high.

Despite a marginal rise in outstanding business volume, Indian goods producers raised workforce numbers at the strongest pace in ten months, reflecting expansion plans.