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:

Monetary Policy Committee

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

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