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New orders placed with goods producers rose at the quickest pace since last December. The rate of expansion was sharp and above its long-run average. The upturn was supported by favourable market conditions, demand strength and publicity.
Likewise, output increased at a sharp rate that was the most pronounced in four months. More than one-quarter (26 per cent) of all survey participants reported higher production volumes, citing sustained expansions in sales, as per S&P Global India Manufacturing PMI report.
Robust new business growth and an associated increase in production requirements urged manufacturers to add to their input inventories in April. The rate of stock accumulation climbed to a survey peak.
The upturn in holdings of raw materials and semi-finished items was facilitated by purchasing activity growth. Not only did buying levels expand for the twenty-second successive month, but also at a sharp rate that was the strongest since February 2021.
Despite the surge in purchasing activity, suppliers were able to deliver inputs in a timely manner during April. Vendor performance improved to the greatest extent in eight months, though only slightly overall.
In stark contrast to the trend for input stocks, holdings of finished products decreased in April. The pace of depletion was moderate, though the fastest in four months. Where a contraction was signalled, monitored firms mentioned that sales had been fulfilled from warehoused items.
Although manufacturers signalled higher operating costs in April, the overall rate of inflation remained below its long-run average despite quickening since March.
Charge inflation also quickened in April, reaching a three-month high and matching its long-run average. That said, while 6 per cent of companies hiked their fees since March, 92 per cent left them unchanged.
Elsewhere, goods producers recorded a marginal increase in outstanding business volumes. Still, firms sought to expand capacities by taking on additional workers. Although only slight, the latest upturn in employment compared with a fractional reduction in March, the report added.
Indian manufacturers were confident that production volumes would be higher in 12 months' time, amid demand resilience, client enquiries, orders pending approval, and marketing efforts. Moreover, the overall level of positive sentiment rose since March.
Fibre2Fashion News Desk (DP)