PMI mfg records 2nd-best improvement in 3.5 years

India's manufacturing sector activity moderated in April, but still recorded the second fastest improvement in operating conditions in three-and-a-half years supported by buoyant demand, a monthly survey said on Thursday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 59.1 in March to 58.8 in April, signalling the second-best improvement in the health of the sector for three-and-a-half years. In Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

According to Pranjul Bhandari, Chief India Economist at HSBC, strong demand conditions which resulted in a further expansion of output, albeit slightly slower than in March. Indian manufacturers reported robust demand for their goods in April, from domestic and external clients. Total new orders rose sharply, with the pace of expansion being the second strongest since the start of 2021, the report said.