Posting 54 in March, the seasonally adjusted S&P Global India manufacturing purchasing managers’ index (PMI) signalled a further improvement in the health of the sector.

However, falling from 54.9 in February, the latest reading highlighted the joint-weakest rate of growth since September 2021.

Goods producers indicated that new orders continued to increase in March. The rate of expansion eased to a six-month low, but remained marked.

Where growth was reported, survey participants commented on successful marketing efforts and improved demand conditions. Rising sales supported a further upturn in production volumes, the ninth in consecutive months.

Despite slowing to the weakest since last September, the rate of expansion was marked and outpaced its long-run average. Manufacturers reported another increase in input prices at the end of fiscal 2021-22, S&P Global said in a release.

Chemical, energy, fabric, foodstuff and metal costs were all reportedly greater in March than in February. The overall rate of inflation quickened and outpaced its long-run average, but was the second-slowest in six months.

Output prices rose in March as goods producers sought to share part of the additional cost burden with their clients. The rate of charge inflation picked up to a five-month high, but was moderate and matched its long-run average.

March data pointed to subdued optimism towards growth prospects among Indian manufacturers, with the overall level of sentiment slipping to a two-year low.

Meanwhile, outstanding business increased only marginally as the vast majority of panelists signalled no change in backlogs from February's levels. Indian manufacturers purchased additional inputs in March, with the rate of expansion remaining marked despite easing to the weakest since August 2021.

Finally, there was a renewed decline in new export orders received by Indian goods producers, ending an eight-month sequence of growth. However, the overall rate of reduction was only modest, S&P Global added.

Fibre2Fashion News Desk (DS)