India Manufacturing PMI Hits 4-Year Low

India's manufacturing sector experienced a significant slowdown in March, with the HSBC India Manufacturing PMI easing to 53.9 from 56.9 in February, marking the weakest improvement in nearly four years. This deceleration is attributed to a combination of factors including fierce competition, heightened market uncertainty, and geopolitical tensions, particularly the ongoing conflict in the Middle East. Input costs for manufacturers rose sharply for items like aluminium, chemicals, and fuels, reaching their steepest level in over three-and-a-half years. Despite these rising expenses, Indian firms largely absorbed the costs, keeping output price inflation at a two-year low to retain customers. Employment in the sector, however, grew at its strongest pace in seven months, and export sales showed resilience, expanding at their strongest pace since last September.