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Country's manufacturing conditions improve in April: PMI
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SME Times News Bureau | 03 May, 2017
India's manufacturing conditions improved for the fourth straight month
in April due to healthy domestic demand conditions and growth in new
export orders, a key macro-economic data showed on Tuesday.
The
Nikkei India Manufacturing Purchasing Managers' Index (PMI), which is a
composite indicator of manufacturing performance during April 2017,
matched the index reading of 52.5 reported in March 2017.
An index reading of above 50 indicates an overall increase in economic activity, and below 50 an overall decrease.
"Buoyant
domestic demand coupled with sustained growth of new orders from abroad
boosted the upturn in total new business received by Indian
manufacturers in April," said Pollyanna De Lima, economist at IHS Markit
and author of the report.
"Having recovered at the beginning of
the year from December's demonetisation-related contraction, growth of
order books has gathered pace in each month since."
The report pointed out the "upturn in order books" was the most pronounced since last October.
"New
export orders rose for the third month in a row, but the rate of
expansion eased from March and was slight overall," the report read.
"Concurrently, output grew solidly, though growth softened slightly since the preceding survey period."
The
report highlighted that the quantity of raw materials and semi-finished
goods purchased by Indian manufacturers rose in April, in line with the
trend recorded throughout the past four months.
"Purchasing
costs increased for the nineteenth consecutive month in April, with
panellists reporting higher prices paid for metals, chemicals and
plastics," the report said.
"The rate of cost inflation gathered pace since March and was above the average recorded over the current sequence of rises."
In
contrast, less than 5 per cent of manufacturers raised their output
prices in April, while almost 93 per cent signalled no change.
"Where
selling prices were raised, there were reports of the passing on of
higher cost burdens to clients. Firms that reduced charges mentioned
attempts to win new customers," the statement said.
Besides, the
report revealed that goods producers were "most optimistic" since last
November, with capacity expansion plans, new product developments,
greater advertising and favourable market conditions expected to
underpin output growth in the year ahead.
"The outlook appears
encouraging too, with output expected to remain on an upward trajectory
amid reports of planned capacity expansions, new product launches,
aggressive marketing campaigns and an improving economic scenario," De
Lima said.
In addition, the report disclosed that manufacturing
jobs rose for the second consecutive month in April, which panellists
related to a combination of greater production needs and expectations of
a pick up in demand.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
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64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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