As a consequence of rising purchasing activity, pre-production inventories expanded.  The rate of accumulation was slight overall and in line with those seen throughout the current four-month sequence of growth.

On the other hand, holdings of finished goods declined in March, and to the greatest extent since last August. According to panellists, both existing and new orders were often fulfilled directly from stocks.

Backlogs of work decreased in March, highlighting spare capacity in the sector. This prevented manufacturers from taking on additional workers and employment levels were broadly unchanged again.

Meanwhile, input costs rose amid reports of the weaker rupee resulting in higher prices paid for imported raw materials. Tariffs were subsequently raised. Rates of cost and charge inflation were at three-and 16-month highs respectively.

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