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Tag: Purchasing Managers Index

  • India’s companies PMI expands in October on increased demand

    After easing to a six-month low in September, India’s companies sector expanded in October as new enterprise continued to extend on increased demand regardless of acceleration in inflation, a survey confirmed.

    The seasonally adjusted S&P Global India Services Purchasing Managers’ Index (PMI) improved to 55.1 in October from 54.3 in September.

    The headline determine was above the impartial 50 threshold for the fifteenth month working and outpaced its long-run common.

    The companies PMI is compiled by S&P Global from responses to questionnaires despatched to round 400 service sector firms.

    The survey October knowledge confirmed an enlargement in new work positioned with Indian service suppliers, persevering with the development seen since August 2021. Moreover, the tempo of development was marked and accelerated from September, the survey confirmed.

    The home market was the primary supply of recent enterprise positive aspects, as overseas gross sales decreased additional in the beginning of the third fiscal quarter. The deterioration within the month-to-month worldwide demand has been registered because the onset of COVID-19 in March 2020.

    Pollyanna De Lima, economics affiliate director, S&P Global Market Intelligence, stated, “The October results show us that service providers had no trouble securing new work in October, despite lifting their charges again. Hence, the sector remained firmly inside expansion territory as business activity and payroll numbers were raised to support strengthening demand.”

    The survey confirmed that the home companies firms reported better working bills in October, stretching the present sequence of inflation to twenty-eight months. The newest enhance was essentially the most pronounced since July and traditionally marked.

    Many firms indicated that increased meals, gasoline and retail costs pushed up their general bills in October, Di Lima added.

    It stated that the continuing will increase in new enterprise and output necessities continued to assist job creation within the service economic system within the month, with employment rising for the fifth month in a row and on the second-fastest tempo in over three years.

    “Optimism towards a more positive environment boosted job creation in October, as service providers sought to adjust capacities to accommodate for expected increases in new work. Sentiment towards the year-ahead outlook for business activity improved to the highest in close to eight years,” De Lima stated.

    The nation’s Manufacturing Purchasing Managers’ Index (PMI) rose to 55.3 in October from 55.1 in September.

    With this, the nation’s Composite PMI Output Index expanded to 55.5 in October from 55.1 in September.

    The survey stated that there was a gentle acceleration in development of personal sector exercise in India, as a stronger enhance within the service economic system greater than offset a slowdown amongst items producers.

  • India’s manufacturing exercise touches 8-month excessive in July on new orders: Survey

    India’s manufacturing sector exercise hit the very best degree in eight months in July, pushed by a big rise in enterprise orders, a month-to-month survey stated on Monday.

    The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index rose from 53.9 in June to 56.4 in July, reflecting the strongest enchancment within the well being of the sector in eight months.

    The July PMI information pointed to an enchancment in general working circumstances for the thirteenth straight month. In PMI parlance, a print above 50 means growth whereas a rating under 50 denotes contraction.

    “The Indian manufacturing industry recorded a welcome combination of faster economic growth and softening inflation during July,” Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, stated.

    Further, Lima stated that output expanded on the quickest tempo since final November, a development that was matched by the extra forward-looking indicator of latest orders.

    “Although the upturn in demand gained strength, there were clear signs that capacity pressures remained mild as backlogs rose only marginally and job creation remained subdued,” Lima added.

    The mixture new order intakes rose considerably in July, recovering the expansion momentum misplaced in June.

    The readings are based mostly on a month-to-month survey of companies which might be primarily into manufacturing actions.

    “The latest increase was in fact the most pronounced since last November, with quicker expansions recorded in all three broad areas of the manufacturing industry,” as per the survey.

    Despite the strong efficiency of the manufacturing trade, general job creation remained subdued. A overwhelming majority of companies (98 per cent) opted to go away workforce numbers unchanged amid a scarcity of stress on working capability, it added.

    Another issue that constrained hiring exercise was future uncertainty.

    According to the survey, regardless of bettering from June’s 27-month low, the general degree of enterprise sentiment was muted within the context of historic information. In reality, 96 per cent of producers forecast no change in output from current ranges over the course of the approaching 12 months.

    It additionally famous that whereas firms stepped up enter buying, job creation remained marginal amid an unsure outlook and a common lack of stress on working capacities.

    “With incidence of shortages diminishing, the rate of input cost inflation eased to an 11-month low in July, subsequently dragging down the rate of increase in output prices to the weakest in four months,” Lima stated.

    As per official daa, the retail inflation based mostly on Consumer Price Index (CPI), which the Reserve Bank of India (RBI) components in whereas arriving at its financial coverage, has been above 6 per cent since January 2022. It was at 7.01 per cent in June.

    Experts imagine the RBI could go in for its third consecutive coverage price hike by not less than 35 foundation factors to test excessive retail inflation.

    The RBI’s rate-setting panel — the Monetary Policy Committee — will meet for 3 days from August 3 to deliberate on the prevailing financial scenario and announce its bi-monthly assessment on Friday.

  • ‘Acute price pressures: Factory PMI growth at 9-mth low’

    India’s manufacturing sector development fell in June as development of whole gross sales and manufacturing eased amid intense worth pressures, as per an S&P Global India survey. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) declined to 53.9 final month from 54.6 in May, with the newest studying exhibiting the weakest tempo of development since final September 2021. A studying beneath 50 signifies contraction.

    The financial restoration of the Indian manufacturing sector continued in June, aided by sturdy home and worldwide consumer demand. However, development of whole gross sales and manufacturing eased amid intense worth pressures, S&P Global India stated.

    Although the speed of enter value inflation remained traditionally excessive, the newest enhance was the slowest in three months, a development that was likewise seen for output expenses, it stated. Inflation issues continued to dampen enterprise confidence, with sentiment slipping to a 27-month low. Elsewhere, enter supply instances shortened for the primary time because the onset of Covid-19, the survey stated.

    S&P Global India stated softer will increase in manufacturing, manufacturing facility orders, shares of purchases and employment all dragged down the PMI in June, alongside an enchancment in provider efficiency which is inverted earlier than getting into the calculation. Factory orders and manufacturing rose for the twelfth straight month in June, however in each instances the charges of growth eased to nine-month lows, the survey added.

    It stated will increase have been generally attributed to stronger consumer demand, though some survey individuals indicated that development was restricted by acute inflationary pressures.

    June knowledge indicated that charges of buy worth and output cost inflation retreated to three-month lows, however remained above their respective long-run averages, S&P Global stated.

    “The Indian manufacturing industry ended the first quarter of fiscal 2022/23 on a solid footing, displaying encouraging resilience on the face of acute price pressures, rising interest rates, rupee depreciation and a challenging geopolitical landscape,” stated Pollyanna De Lima, affiliate director, S&P Global Market.

    “Yet, there was a broad-based slowdown in growth across a number of measures such as factory orders, production, exports, input buying and employment as clients and businesses restricted spending amid elevated inflation,” she added.

    There was optimistic information relating to provide chains, with the newest outcomes exhibiting the primary shortening of enter lead instances because the onset of Covid-19.

    “This seemed to have curbed the upward pressure on input costs, with purchase prices and output charges increasing at sharp but slower rates during June. Companies nevertheless remained very concerned about inflation, a key factor that dragged down business confidence to a 27-month low,” S&P Global stated.

    Monitored companies reported will increase for a variety of inputs — together with chemical substances, electronics, vitality, metals and textiles — which they partly handed on to purchasers within the type of greater promoting costs. Although the outlook for the Indian manufacturing trade remained optimistic mid-way by means of 2022, sentiment slipped to a 27-month low. Fewer than 4 per cent of panellists forecast output development within the 12 months forward, whereas the overwhelming majority (95 per cent) count on no change from current ranges. Inflation was the principle concern amongst items producers, it stated.

  • In October, providers sector exhibits robust uptick, factors to revival: PMI

    The providers sector, which took the most important hit when the Covid pandemic hit the nation final yr, staged a robust development in October, pushed by an uptick of demand and sentiments forward of the festive season, a month-to-month survey mentioned on Wednesday.
    The month-to-month survey, by IHS Markit, mentioned the Purchasing Managers’ Index (PMI) for the sector rose to a ten-and-a-half-year excessive of 58.4 in October as in opposition to 55.2 within the earlier month. An index studying of fifty or above suggests growth and under it factors at contraction.
    The report mentioned service firms employed extra arms, resulting in job era reaching the best ranges since February 2020, when the pandemic struck. The providers sector consists of retail, banks, inns, actual property, training, well being, social work, pc providers, recreation, media, communications, journey and tourism.
    The sharp development within the providers sector in October is a sign that the third quarter of the present monetary yr could witness excessive financial development, analysts mentioned. With the pandemic just about shutting down the providers sector, the PMI had plunged to an all-time low of 5.4 in April from 49.3 in March 2020 — an unprecedented contraction because the survey first started over 14 years in the past.
    On November 1, IHS Markit mentioned India’s manufacturing exercise grew at its quickest tempo in eight months in October, as companies scaled up output in sync with a considerable upturn in new work intakes forward of the height festive season. The Nikkei Manufacturing PMI rose to 55.9 in October from 53.7 within the earlier month.
    Shailesh Chandra, president Passenger Vehicles Business Unit, Tata Motors, mentioned that on Dhanteras this yr, the passenger automobile deliveries doubled over the past yr. “Across India, our deliveries grew by 94%,” mentioned Chandra, reflecting the robust demand this festive season.
    “There are clearly bright lights shining when we look at various economic indicators,” mentioned Madan Sabnavis, Chief Economist, Care Ratings.
    GST collections in October had been at a close to file excessive of Rs 1.31 lakh crore. “Exports are up by 42.3%, which means that we are riding the global wave of flourishing global trade. Imports too are rising, both oil and non-oil, which is good news, especially the latter,” Sabnavis mentioned.
    Anticipating a restoration, the RBI has forecast a development of 9.5 per cent for fiscal 2021-22.
    According to IHS Markit, providers companies had been capable of safe a wholesome consumption of latest work regardless of charging extra for his or her providers. Output costs rose at a strong price that was the strongest since July 2017. Anecdotal proof steered that extra price burdens had been handed on to purchasers. While the speed of inflation was at a six-month excessive and outpaced its long-run common, firms cited larger gas, materials, retail, workers and transport prices.

    Pollyanna De Lima, Economics Associate Director at IHS Markit, mentioned, “A substantial rise in prices charged for the provision of services in India had no detrimental impact on demand, as companies signalled the strongest monthly expansion in new business in over a decade.”
    However, De Lima mentioned, ‘enterprise confidence remained subdued” given the inflationary pressures. “Companies’ expenses rose notably from September, which survey participants mainly linked to higher fuel, material, retail, staff and transportation costs,” she mentioned.
    The survey mentioned that general, personal sector output in India elevated at a sharper price in October as development quickened amongst each producers and repair suppliers. The Composite PMI Output Index rose from 55.3 in September to 58.7, signalling the strongest month-to-month growth since January 2012.

    Earlier, talking at an Idea Exchange session at The Indian Express, Kotak Asset Management Company MD and CEO Nilesh Shah had mentioned, “As a fund house, we are overweight industrials and capital goods and we have built our position in the last six-eight months on the hope that capex will revive. But this revival of capex will be in different formats this year. Globally, the soft investments in IT systems, automation and technology are more than the hard assets. Same thing will happen in India.”
    Pankaj Pandey, head of analysis at ICICIdirect.com, mentioned, “Demand is strong across consumer-facing sectors and the challenges are emerging on the supply side. For example, in the auto sector, the demand is good but there are supply issues. The hirings are strong and there is a shortage of people across several service-oriented industries. The pick-up in infra-related sectors such as steel and cement are also helping, along with improvement on logistics challenges. The only challenges are on the supply chain front and cost-push inflation,” Pandey mentioned.

  • India’s companies sector exercise expands at quickest tempo in 10.5 years in October: PMI

    India’s companies sector exercise expanded on the strongest tempo in ten-and-a-half years in October, pushed by a considerable upturn in enterprise exercise amid beneficial demand circumstances, a month-to-month survey mentioned on Wednesday.
    Companies indicated {that a} notable pick-up in new enterprise led to the quickest enlargement in output in over a decade and because of this extra jobs had been created, although enterprise confidence remained subdued resulting from rising inflationary issues.
    The seasonally adjusted India Services Business Activity Index rose from 55.2 in September to 58.4 in October, signalling the strongest charge of development in ten-and-a-half years.
    For the third straight month, the companies sector witnessed an enlargement in output. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means enlargement, whereas a rating under 50 denotes contraction.

    “… The recovery of the sector entered its third straight month, with firms scaling up activity at the fastest pace in ten-and-a-half years and creating more jobs,” mentioned Pollyanna De Lima, Economics Associate Director at IHS Markit.
    On the value entrance, with enter prices once more rising sharply, firms lifted their charges on the quickest tempo in practically four-and-a-half years. Monitored firms cited increased gasoline, materials, retail, workers and transport prices.
    “… Service providers were concerned that persistent inflationary pressures could deter growth in the coming year. Business confidence remained subdued in the context of historical data,” Lima mentioned.
    On the employment entrance, companies firms continued to rent further employees in October. Although average, the tempo of job creation quickened from September to the strongest since February 2020.
    However, the most recent information continued to level to weak worldwide demand for Indian companies. New export enterprise decreased in October, a pattern that has been recorded for the reason that COVID-19 outbreak, the survey mentioned.
    Meanwhile, non-public sector output in India elevated at a sharper charge in October as development quickened amongst each producers and repair suppliers.
    The Composite PMI Output Index — which measures mixed companies and manufacturing output — rose from 55.3 in September to 58.7 in October, signalling the strongest month-to-month enlargement since January 2012.

    October information pointed to a second successive month-to-month enhance in non-public sector employment, however the charge of enlargement was solely slight as development amongst service suppliers was partly offset by job shedding at items producers.
    Business sentiment amongst firms working within the Indian non-public sector strengthened in October, owing to a notable rebound in optimism at items producers, the survey mentioned.

  • ‘Manufacturing PMI rises in Oct on upturn in new intakes, production’

    India’s manufacturing exercise grew at its quickest tempo in eight months in October, as companies scaled up output in sync with a considerable upturn in new work intakes forward of the height festive season.
    The Nikkei Manufacturing buying managers’ index (PMI) rose to 55.9 in October from 53.7 in September. An index studying of fifty or above suggests growth and under it factors at contraction. Manufacturing PMI has now grown for a fourth straight month after the primary contraction in 11 months in June.
    Fresh orders and manufacturing facility output in October expanded on the strongest tempo since March. New export orders, too, moved up on the quickest price in three months. Companies resorted to large enter purchases to construct stock in anticipation of additional enchancment in demand, whereas enterprise optimism hit a six-month excessive. This led to enter prices rising on the sharpest price in 92 months, elevating issues about sustainability of hovering company earnings.
    Pollyanna De Lima, economics affiliate director at IHS Markit that releases the PMI knowledge, mentioned: “With companies gearing up for further improvements in demand by building up their stocks, it looks like manufacturing activity will continue to expand throughout the third quarter of 2021-22 should the pandemic remain under control. Upbeat business confidence and projects in the pipeline should also support production in the coming months.”
    Together with some high-frequency indicators, the manufacturing surge has lent credence to the concept an financial restoration could also be taking roots after the second Covid wave. FE

  • ‘Manufacturing PMI steady in April despite lull in domestic orders’

    The nation’s manufacturing exercise improved marginally in April at the same time as recent home manufacturing unit orders and output eased to eight-month lows attributable to an intensification of the coronavirus pandemic, which was nullified by new export orders rising at quickest charge since October final yr.
    According to knowledge launched by analytics agency IHS Markit, buying managers’ index (PMI) for April marginally rose to 55.5 after declining to a seven-month low in March at 55.4. A determine above 50 signifies enlargement, whereas sub-50 indicators contraction.

    “Economic conditions in India’s manufacturing sector remained favourable in April, as companies scaled up production in line with a further improvement in demand. While output and sales increased at the slowest rates since last August due to an intensification of the Covid-19 crisis, there was a faster upturn in international orders,” IHS Markit mentioned. Moreover, portions of purchases expanded at one of many strongest charges seen for over 9 years as corporations sought to spice up inventories.

    DefinedNew export orders keyWhile output and gross sales elevated on the slowest charges since final August attributable to an intensification of the Covid-19 disaster, there was a sooner upturn in worldwide orders.

    Pollyanna De Lima, economics affiliate director at IHS Markit, mentioned: “The PMI results for April showed a further slowdown in rates of growth for new orders and output, both of which eased to eight-month lows amid the intensification of the Covid-19 crisis. Still, the increases were strong by historical standards and the survey revealed other positive news.” New export orders surged to the quickest since final October and shopping for ranges expanded at one of many sharpest charges seen for 9 years. Also, the downturn in employment eased and enterprise confidence in direction of the one-year outlook strengthened, IHS Markit mentioned.

    “The surge in Covid-19 cases could dampen demand further when firms’ financials are already susceptible to the hurdle of rising global prices. April saw the steepest increase in input costs for nearly seven years drive the sharpest upturn in output charges since October 2013,” De Lima mentioned.

  • ‘Services PMI slows down in Dec’

    The companies sector exercise slowed all the way down to its lowest stage in three months in December with the Purchasing Managers’ Index (PMI) for the sector dropping to 52.3 in December from 53.7 in November.
    The PMI knowledge launched by IHS Markit confirmed that the Indian companies sector continued to recuperate from the coronavirus-induced contractions seen by way of most of 2020, with output and new enterprise rising for the third straight month in December.
    However, in each circumstances the charges of development softened to the weakest over this era. Staff hiring got here to a halt as a consequence of liquidity considerations, labour shortages and subdued demand, whereas enterprise optimism pale.
    Price knowledge confirmed a pick-up in enter price inflation, the strongest since February, however a renewed fall in promoting costs as some companies sought to beat competitors and safe new work, IHS Markit stated.

  • ‘Manufacturing PMI expands for 5th straight month in Dec’

    The manufacturing sector continued to strengthen in December, with the IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) remaining agency amid easing of Covid-19 curbs.
    The seasonally adjusted IHS Markit Manufacturing PMI was at 56.4 in December, a tick larger than November’s studying of 56.3 and above the essential 50.0 threshold for the fifth straight month.
    Manufacturers stepped up manufacturing and enter shopping for amid efforts to rebuild their inventories following enterprise closures earlier within the yr, the IHS Markit survey mentioned. While corporations have been capable of carry enter shares, and did so on the quickest price in practically a decade, holdings of completed items decreased sharply as a result of ongoing will increase in new work.
    In April 2020, the manufacturing PMI had plunged to a low of 27.4 as in opposition to 51.8 in March — its first contraction in 33 months. It has recovered since then.
    Pollyanna De Lima, economics affiliate director at IHS Markit, mentioned, “The latest PMI results for the Indian manufacturing sector continued to point to an economy on the mend, as a supportive demand environment and firms’ efforts to rebuild safety stocks underpinned another sharp rise in production. It’s important to emphasise the broad-based nature of the recovery, with marked expansions in both sales and output noted across each of the three monitored sub-sectors.”

    “The latest figure was consistent with a marked improvement in business conditions across the sector,” the survey mentioned. However, one space that failed to enhance was employment, with jobs shed as soon as once more on the finish of 2020. Meanwhile, uncooked materials shortage at suppliers precipitated supply delays and the quickest rise in enter prices for over two years, it added.
    Reflecting the loosening of Covid-19 restrictions, strengthening demand and improved market situations, manufacturing unit orders elevated throughout December, it mentioned. “In response, firms lifted production again. In both cases, rates of expansion remained sharp despite easing to four-month lows,” IHS Markit mentioned.