Indian manufacturers saw new orders slowing precipitously in April, after a strong showing in March, due to a contraction in demand, according to a private survey.
The Nikkei Manufacturing Purchasing Managers’ Index (PMI) slowed to 50.5 in April from 52.4 in March. This places April’s manufacturing activity very near the 50 mark, a reading below which marks a contraction.
“PMI data indicated that Indian manufacturers raised output at a slower pace in April as new business inflows were broadly unchanged during the month,” according to a statement from Nikkei.“The upturn in new export orders was sustained, although growth was at a six-month low.”
“The new orders index fell to 50.1 in April, just above the expansion threshold, from 53.9 in March,” Nomura research analysts Sonal Varma and Neha Saraf wrote in a report. “Given that March data was at an eight-month high, some consolidation was expected, but the April data suggest a sharper-than-expected moderation in domestic demand.”
Expanded production“The inventory data indicate that, despite slowing new orders, production should continue to expand at a moderate pace in coming months,” they wrote.
“In spite of the stagnation in new work, goods production increased in April,” according to the Nikkei statement.“The rate of expansion was only slight and softened since March, however.”
