India's manufacturing moderates in March

New Delhi: India's manufacturing sector activities moderated in March with companies reporting softer expansions in new orders and production as inflation concerns dampened business confidence, a monthly survey said on Monday.

The seasonally-adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) was at 54.0 in March, down from 54.9 in February, highlighting weakest rate of growth in terms of production and sales since September 2021.

The March PMI data pointed to an improvement in overall operating conditions for the ninth straight month. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.

"Manufacturing sector growth in India weakened at the end of fiscal year 2021/22, with companies reporting softer expansions in new orders and production," Pollyanna De Lima, Economics Associate Director at S&P Global, said.

On the price front, manufacturers reported another increase in input prices at the end of fiscal year 2021/22. Chemical, energy, fabric, foodstuff and metal costs were all reportedly greater than in February.

"Goods producers signalled higher prices paid for chemicals, energy, fabric, foodstuff and metals, despite supplier performance worsening to the least extent in almost a year," Lima said.