INDIA’S BUSINESS ACTIVITY HIT A 14-YEAR HIGH IN APRIL: FLASH PMI
NEW DELHI: India’s business activity may have touched a 14-year high in April, with the HSBC Flash India Seasonally Adjusted Composite Purchasing Managers Index (PMI), up to 62.2 in April from a final reading of 61.8 in March, riding on buoyant demand, according to a statement from S&P Global.
Flash PMIS are released a few days before the actual PMI numbers and they include more than three-fourths of the responses that go into the calculation of final PMIS. India became only the eighth country in the world to have its Flash PMI reading in January this year.
The Flash PMI manufacturing output index was at 63.2, nearly the same as the final reading in March. Flash Services PMI Business Activity Index increased to 61.7, in the reporting month, 0.5 points more than the final reading in the previous month contributing to the increase in the headline number. “Services growth accelerated further in April as new orders in both domestic and international markets rose.” said Pranjul Bhandari, chief India economist at HSBC India in the statement.
“Employment in the manufacturing and service sector diverged, with the former hiring at an accelerated pace, while the latter slowed their pace of hiring. Given pending orders and backlogs of work, hiring levels are likely to remain robust.” he said in a research note from HSBC India.
NEW DELHI: India’s business activity as measured by the HSBC Flash India Seasonally Adjusted Composite Purchasing Managers Index (PMI), was up to 62.2 in April from a final reading of 61.8 in March on buoyant demand and new business intakes, according to a statement from S&P Global.
Flash PMIS are released a few days before the actual PMI numbers and they include more than three-fourths of the responses that go into the calculation of final PMIS. India became only the eighth country in the world to have its Flash PMI reading in January this year.
The Flash PMI manufacturing output index was at 63.2, staying nearly the same as the final reading in March. Flash Services PMI Business Activity Index increased to 61.7, in the reporting month, 0.5 percentage points more than the final reading in the previous month contributing to the increase in the headline number. “services growth accelerated further in April as new orders in both domestic and international markets rose.” said Pranjul Bhandari, Chief India Economist at HSBC India in the statement.
“Employment in the manufacturing and service sector diverged, with the former hiring at an accelerated pace, while the latter slowed their pace of hiring. Given pending orders and backlogs of work, hiring levels are likely to remain robust.” said Bhandari in a research note from HSBC India.
Input cost inflation moderated for both the manufacturing and service sectors. The latter however experienced an increase in input costs due to higher labour costs, Bhandari said in her note. Composite output prices too moderated in the reporting month.
Manufacturers, however, increased output charges in response to robust demand for manufactured goods, she said.
“As a result, manufacturers were able to enjoy better margins in April” she added in the note.
The HSBC research note further said that there was strong future optimism as the ordersinventory ratio remained above one, despite a slight moderation in the reporting month and the responses to the survey signalled further improvements in the coming year.
India’s manufacturing and services PMI numbers have stayed above 50 for 33 and 32 consecutive months now. A PMI value above 50 denotes an expansion in economic activity compared to the previous month. Final PMI numbers for manufacturing and services will be released in the first week of May.