Non-public sector progress hits 3.5-year low in March
The HSBC Flash India Composite Buying Managers’ Index fell to 56.5 in March from 58.9 in February and 59.5 a 12 months earlier. The composite PMI combines manufacturing and providers indices, with readings above 50 signalling enlargement and people under indicating contraction.
“Output progress eased throughout each manufacturing and providers because the vitality shock unfolds,” mentioned Pranjul Bhandari, chief India economist at HSBC. Manufacturing exercise weakened extra sharply, with the PMI falling to 53.8 in March from 56.9 in February. Market volatility and client uncertainty linked to the battle led to the slowest rise in manufacturing unit output since August 2021. The providers PMI eased to 57.2 from 58.1.
Inflationary pressures intensified in the course of the month. Enter prices, together with oil, vitality, meals, aluminium, metal and chemical compounds, rose to a 45-month excessive, whereas promoting costs elevated to a seven-month excessive.
“Price pressures intensified, however firms are absorbing a part of the rise by squeezing margins,” mentioned Bhandari.
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