Factory activity steady in April, demand tepid - PMI

BANGALORE Fri May 2, 2014 10:38am IST

Workers pour melted copper in a mould to make utensils and accessories inside a workshop in Srinagar March 27, 2014. REUTERS/Danish Ismail/Files

Workers pour melted copper in a mould to make utensils and accessories inside a workshop in Srinagar March 27, 2014.

Credit: Reuters/Danish Ismail/Files

Related Topics

BANGALORE (Reuters) - India's factory growth showed no sign of acceleration last month as tepid demand restrained output even as price pressures eased, a business survey showed on Friday.

The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit and which gauges business activity in Indian factories but not its utilities, was at 51.3 in April, identical with the March level.

The new orders sub-index, which measures overall demand, slipped in April to 52.5 from 52.7 as demand from abroad waned. The export orders reading held above the 50-mark that separates growth from contraction but suffered its biggest one-month fall in nearly two years.

That pushed the output index down to its lowest level this year, although it remained comfortably above the 50 mark.

"The momentum in the manufacturing sector held broadly steady, with domestic demand countering a slowdown in export orders," said Leif Eskesen, chief economist for India & ASEAN at HSBC.

The survey also showed both input and output prices rose at their slowest pace in about a year. That is likely to provide some respite to policymakers after India's wholesale inflation hit a three-month high in March.

The Reserve Bank of India left rates on hold at 8 percent last month.

The ruling Congress party's failure to revive the economy has turned the opposition Bharatiya Janata Party's pro-business leader Narendra Modi into the overwhelming favourite to head a new government after election results are announced in mid-May.

(Editing by Richard Borsuk)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Tracking Gold

Tracking Gold

Gold inches higher on weaker dollar, Asian buying  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage