India PMI April 2017


India: Economic activity weakens slightly in April

May 4, 2017

Activity in India’s manufacturing sector was stable in April, matching March’s momentum. The manufacturing Purchasing Managers’ Index (PMI), elaborated by Nikkei and IHS Markit, rested at March’s 52.5. As a result, the manufacturing PMI lies above the 50-threshold that separates expansion from contraction.

March’s reading came as faster growth in new orders was balanced by slower growth in output. While rising demand spurred new business, it did not translate into higher overall output. Meanwhile, jobs were added for a second consecutive month, however at a soft pace. Higher prices for some commodities led cost inflation to gather pace in April.

Meanwhile, the Nikkei services PMI deteriorated, falling from 51.5 in March to 50.2. Despite the fall, the index still lies in expansionary territory. According to Nikkei, companies commented that challenging market conditions hampered growth and new business and employment grew only slightly.

FocusEconomics Consensus Forecast panelists see fixed investment rising 5.3% in FY 2017, which is unchanged from last month’s estimate. For FY 2018, the panel expects fixed investment to increase 6.7%.

Author: Angela Bouzanis, Senior Economist

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India PMI Chart

India PMI April 2017

Note: Nikkei India Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Nikkei and IHS Markit.

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