New Delhi, March 24 (IANS). The output growth of India’s manufacturing and services sector has slowed down in March. The reason for this is the increase in energy prices due to increasing tension in the Middle East. This information was given in the HSBC Flash India PMI data released on Tuesday.
The PMI composite output index, which shows the condition of the country’s manufacturing and service sectors, stood at 56.5 in March.
Whenever PMI is above 50 it shows growth, whenever it is below this level there is a decline in economic activity.
“A slowdown in domestic demand led to a decline in new orders, which grew at the slowest pace in more than three years, although there was a record increase in new export orders. Cost pressures increased, but companies are absorbing some of this growth by squeezing margins,” said Pranjul Bhandari, HSBC’s chief economist in India.
Companies indicated that the Middle East war, unstable market conditions and inflationary pressures slowed growth. Input costs and selling charges recorded the fastest growth in 45 and seven months, respectively.
New orders placed by manufacturing companies and services companies also grew slowly, according to data compiled by S&P Global. Overall sales grew at the slowest pace since November 2022.
At the overall level, outstanding trade volume increased for the fourth consecutive month in March.
According to manufacturing data, procurement levels and procurement stocks increased further at the end of the last quarter. However, in both cases the growth rate slowed from February.
According to PMI data, “companies bore a large share of their additional cost burden, as shown by the increase in selling prices, which was much lower than input costs.”
According to HSBC, Indian private sector companies were optimistic about increasing production levels in the coming 12 months. Efficiency improvements, marketing campaigns and new customer inquiries were some of the reasons companies cited for their positive assessments.
–IANS
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