‘April Flash PMI signals quickening in combined economic output’

Combined output from India’s manufacturing and services sectors may have grown at the fastest pace in almost 14 years in April, with services activity likely quickening to a threemonth high, the HSBC Flash Purchasing Managers’ Index (PMI) signalled.

A spurt in international sales is reckoned to have bolstered new order in

ows for manufacturing and services rms, with fresh export orders seen to have grown at the fastest pace since September 2014, as per the survey.

The manufacturing sector Flash PMI stood at 59.1 in April, unchanged from March’s nal reading. The services PMI, which stood at 61.2 in March, rose to 61.7 on the Flash PMI print for this month.

The Flash PMI scores for an ongoing month are based on responses from about 75- 85% of 800 services and manufacturing businesses surveyed for the PMI that is available for each month in the rst week of the subsequent month.

“The composite output index rose at the fastest pace in nearly 14 years, with the services PMI climbing further in April, led by a surge in new orders,” HSBC economists wrote in a note.

Mixed signals on hiring Manufacturing rms accelerated hiring while services rms slowed down on new job creation, the Flash PMI signalled, even as both sectors reported a dip in input costs. While manufacturers raised output charges, improving their margins this month, services rms saw operating margins worsen with labour costs spiking.

“The orders-to-inventory ratio for manufacturers continue to remain above one, albeit moderated slightly in April,” HSBC economists Pranjul Bhandari and Maitreyi Das observed in the note.

“Overall business con dence ticked up... and panellists expect further improvement in demand conditions over the coming year,” they added.