Private Sector Growth Accelerates As Manufacturing Rebounds: HSBC Flash PMI

The reading remains well above the long-term average, indicating sustained economic momentum after a brief slowdown linked to disruptions from the West Asia conflict. Manufacturing leads the recovery The upturn was led by manufacturing, which recorded a notable acceleration in both output and new orders. The flash manufacturing PMI climbed to 55.9 in April from 53.9 in the previous month, reflecting stronger demand conditions, capacity expansion and increased inflows of new business. While the services sector also continued to expand, growth remained comparatively softer. Survey participants noted that services activity was partly affected by external uncertainties, including geopolitical tensions impacting export demand. Demand and hiring strengthen New orders across the private sector rose at a faster pace, supported by improved demand conditions, rising client enquiries and increased technology investments. Companies also reported stronger business requirements and expansion plans. Employment growth picked up to a ten-month high, with hiring increasing across both manufacturing and services. Firms cited optimistic business expectations and pipeline projects as key drivers of workforce expansion. Export trends mixed Export performance remained uneven. Manufacturing firms recorded the fastest growth in export orders in nine months, while services exports saw a slower uptick, attributed partly to the impact of geopolitical tensions in the Middle East region. At the aggregate level, export growth moderated compared to March. Despite easing slightly from March levels, input cost inflation remained high, the second-steepest in nearly three years. Firms reported rising expenses for fuel, gas, oil and key raw materials such as chemicals, metals, rubber and food products. Some companies also highlighted gas shortages as a factor pushing up costs. To manage these pressures, businesses continued to raise output prices, although the increase in selling prices remained lower than the rise in input costs, indicating margin pressures. Outlook remains positive but cautious Businesses remain optimistic about growth over the next 12 months, supported by marketing efforts, pending project approvals and strong demand expectations. However, overall confidence softened slightly compared to March, reflecting continued global uncertainties. The data suggests that while India’s private sector is regaining momentum, external risks and persistent cost pressures may continue to shape business sentiment in the near term. (KNN Bureau)