The S&P Global India Purchasing Manager’s Index (PMI) rose to a three-month high as it increased to 56.4 in March from 55.3 in February. The increase on this index indicates the strongest improvement in operating conditions in 2023 so far as output and new orders increased to a three month high.
The private survey showed that this increase in PMI is driven by several factors including resilience in demand, growth in factory orders and easing input cost pressure. The output rose at the quickest pace since December and outran its long run average while Input cost inflation for manufacturing firms slipped to the second lowest mark in 2 and a half years.
The PMI average for the final fiscal quarter, i.e, between January to March was 55.7 which was lower than the 56.3 that was recorded in the previous quarter, i.e. Q3. S&P Global, on the basis of it’s survey, further noted that even though export orders grew at a faster rate in March as compared to the previous months, they remained “slight and historically subdued.”
The PMI Index is compiled by S&P Global on the basis of responses to questionnaires that are sent to purchasing managers in a panel comprising of 400 manufacturers. A reading greater than 50 indicates an overall expansion while a reading less than 50 signals an overall decrease.
This was written by Ms. Anshika Gupta, Intern, All India Legal Forum.