Manufacturing sector grew for the fourth month in a row in April on surge in new business orders but the pace of expansion was same as the previous month and job growth moderated, a monthly survey showed on Tuesday.
Input costs rose for the 19th straight month for manufacturers, amid indications that persisting inflationary pressure may force the Reserve Bank to continue with its ‘neutral’ monetary policy stance, to which the central bank recently shifted from an earlier ‘accommodative’ mode.
The Nikkei Markit India Manufacturing Purchasing Managers’ Index (PMI) -- an indicator of manufacturing activity - matched March’s reading of 52.5 in April as well.
A reading above 50 indicates expansion, while a score below this mark means contraction. Though the upturn in order books was ‘most pronounced’ since last October and new export orders rose for the third month in a row, the rate of factory output growth eased from March.