(MENAFN- KNN India) Up from 51.2 in February to 52.1 in March, the headline HSBC India Purchasing Managers' Index (PMI) highlighted a further improvement in the health of India's manufacturing economy. That said, the average reading for the first three months of 2015 was lower than seen in the final three months of 2014.
March PMI data pointed to an overall improvement in manufacturing operating conditions across India. A stronger increase in new orders led firms to boost production levels and raise buying activity. The latest increase in production was broad-based by sector with growth signalled by consumer, intermediate and investment goods companies.
According to experts, stronger expansions of output, new orders and stocks of purchases all contributed to a higher PMI reading in March. To add to the good news, all three monitored market groups of consumer, intermediate and investment goods delivered faster growth, with consumer goods production continuing to lead the way.
However, the marked rise in input costs is an area of concern, which has resulted in firms raising their tariffs once again. Greater cost burdens add to the pressure on margins which could potentially be squeezed by competitive pressures.
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