|
|
Business conditions improve in March, indicates PMI
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 05 Apr, 2016
Business conditions improved in March owing to strong inflows of new
work leading firms to scale up output, and domestic demand improved
along with rise in exports business, key macro-economic data showed on
Monday.
In March, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) - a composite single figure indicator of
manufacturing performance - rose to an eight-month high of 52.4 from
51.1 in February.
An index reading of above 50 indicates an overall increase in the economic activity, and below 50, an overall decrease.
"PMI
data suggest we should expect another quarter of robust economic growth
in the last quarter of the 2015-16 financial year," said Pollyanna De
Lima, economist at Markit, which compiles the survey.
However on the price front, cost inflation accelerated, while charges rose to their greatest extent since November 2014.
In
the reviewed month, production growth grew at the fastest pace since
August 2015 with consumer goods posting fastest rate of increase.
According
to the index, March witnessed the third successive monthly rise in
order books as a result of improved demand from domestic and external
clients.
Though new export orders saw sustenance, the rate of expansion was slight.
Similar
is the case with buying levels linked to stock building initiatives in
March, which though quicker than February, had only a slight overall
growth.
"Despite gathering momentum, growth of production and new
orders still remained below trend rates. On the export front, it was
encouraging to see a sustained increase in new export orders, often
attributed to the depreciation of the rupee," said De Lima.
Pre-production
inventories expanded as a result of rising purchasing activity but the
rate of accumulation was slight overall as seen in the current
four-month growth sequence.
Finished goods holdings however
slumped the highest in March since August 2015, with new and existing
orders often fulfilled directly from the stocks.
Unemployment levels broadly broadly remained the same as backlogs of work fell in March.
Meanwhile
a weaker rupee resulted in higher prices for raw materials increasing
input costs while rates of cost and charge inflation were at a high of
three months and six months respectively.
"Falls in commodity and
oil prices were offset by the weaker rupee making imported raw
materials costlier. This build-up in inflationary pressures may lead the
Reserve Bank of India to hold off from cutting rates, especially as
solid growth was seen," added De Lima.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|