BENGALURU, May 4 (Reuters) – India’s manufacturing growth edged up slightly in April but remained stuck near a four-year low as weak demand and soaring input costs driven by the Middle East war weighed on activity, a survey showed.
• HSBC’s final India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, rose to 54.7 last month from March’s 53.9, but was lower than a preliminary estimate of 55.9.
• The index has remained above the 50-mark separating expansion from contraction for almost five years. Still, April’s reading marked only a modest recovery from March’s 45-month low.
• Production and new orders – a key gauge of demand – each rose at the second-slowest pace since mid-2022 as firms cited competition, the U.S.-Israel war with Iran and lower order approval.
• Cost burdens climbed to their highest since August 2022 as the war drove up prices for raw materials – especially fuel. Manufacturers lifted selling prices at the fastest pace in six months.
• Foreign demand provided a bright spot with export orders expanding at the fastest pace in seven months.
• Despite subdued overall sales, companies hired additional workers at the strongest pace in 10 months with firms citing expansion plans.
• Manufacturers also remained optimistic towards growth prospects and business sentiment reached its second-highest level since November 2024.
(Reporting by Anant ChandakEditing by Shri Navaratnam)
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