India's manufacturing activity hits 16-year high in March
India's manufacturing sector witnessed robust growth in March, with the HSBC Purchasing Managers' Index (PMI) soaring to a 16-year high of 59.1, according to data released on April 2. This surge, which surpasses the critical 50-point threshold distinguishing growth from contraction, is attributed to significant increases in output and new orders since October 2020. However, the latest PMI value marginally missed the preliminary estimate of 59.2.
Manufacturing output has been growing for past 33 months
The HSBC India Manufacturing PMI, adjusted for seasonal variations, climbed from February's 56.9, indicating a stronger influx of new orders, output and input stocks. This rise also signals a resurgence in job creation. "India's March manufacturing PMI rose to its highest level since 2008. Manufacturing companies expanded hiring in response to strong production and new orders," stated Ines Lam, HSBC's economist. Data indicates that manufacturing output has been consistently growing for the past 33 months.
Companies accelerate purchasing rate amid sales projections
The latest PMI data shows the highest new order growth in almost three and a half years in March. Domestic and export markets strengthened with improved sales to Africa, Asia, Europe, and the US. In anticipation of projected sales improvements, companies accelerated their purchasing rate to the fastest since mid-2023, marking one of the most vigorous rates in 13 years. On the job front, manufacturers recruited more workers in March after maintaining stable payroll numbers for the previous two months.