Indias manufacturing sector grew marginally in April as new orders poured in,but the rate of expansion was limited by power shortages and was weakest so far this year,an HSBC survey said.
The HSBC India Manufacturing Purchasing Managers Index (PMI),compiled by Markit,rose to 54.9 in April from 54.7 in March. The index has remained above the 50-mark that divides growth from contraction for more than three years.
Activity in the manufacturing sector expanded at a slightly faster pace in April. While output growth moderated … new orders continued to pour in,including for exports, said Leif Eskesen,chief economist for India & ASEAN at HSBC. The new orders sub-index rose to 61.1 in April after falling to 58.1 in March,buoyed by strong exports,but while remaining solidly above 50 the factory output index fell for the third straight month.
However,actual industrial output data is painting a bleaker picture with India posting sluggish factory production growth of 4.1 per cent in February from a year ago. The report further noted that the rate of expansion was the weakest in 2012.