Wilting local, global demand hits factory activity in March

HSBC manufacturing PMI was at 52 in March, expanding at its slowest pace since November 2011

After having picked up in February, India’s manufacturing PMI grew at its slowest rate in the last 16 months in March 2013.

The HSBC Purchasing Managers’ Index posted a score of 52 in March, down from 54.2 in February 2013. This is the slowest growth rate since November 2011. It is the persistent power failures that hampered the growth of the manufacturing sector in March.

The HSBC Purchasing Managers’ Index is a composite index that surveys factories and indicates the conditions in the manufacturing sector. A score of above 50 indicates an expansion and a score below 50 indicates a contraction.

Though new work was coming in, the rate of expansion in March was low. Export orders and output too rose moderately in March. Input prices experienced a rise, but the vendor performance deteriorated at its fastest pace in over two years. There was a rise in the purchasing activity, but it was at its slowest rate since October 2012.

Indian factories stepped up production last month as domestic orders poured in at a faster pace than January, but weak global demand dented export growth, the survey showed.