MUMBAI, Apr 5 (NNN-PTI) – India’s manufacturing Purchasing Managers’ Index (PMI) for Mar, declined to 54 from 54.9 in the preceding month of Feb, as per a statement released yesterday by S&P Global.
Though the index remained above the 50-level, that separates growth from contraction for the past nine-straight months, the survey indicated, business confidence at a two-year low, as new orders and output have grown at the weakest rate since Sept, due to rising prices.
Anecdotal evidence indicated that inflation concerns and economic uncertainty, dampened overall confidence, the statement said.
“The slowdown was accompanied by an intensification of inflationary pressures, although the rate of increase in input costs remained below those seen towards the end of 2021,” said Pollyanna De Lima, Economics Associate Director, at S&P Global.
While factories increased headcount for the first time in four months, rising cost pressures remained one of the main concerns, as input prices rose at a faster pace in Mar, forcing companies to raise output prices that rose at a quick rate in the past five months.
“For now, demand has been sufficiently strong to withstand price hikes, but should inflation continue to gather pace, we may see a more significant slowdown, if not an outright contraction in sales,” the director said.– NNN-PTI
