The amount of raw materials and semi-finished goods purchased by Indian manufacturers rose in April, in line with the trend recorded throughout the past four months.

The rate of expansion was, however, modest and weakened from that seen in March. Stocks of purchases continued to rise, albeit growth eased from the preceding survey period. Suppliers' delivery times lengthened in April, amid reports of lorry strikes.

The deterioration in vendor performance was only marginal, but reversed the improvement recorded in March. Purchasing costs increased for the nineteenth consecutive month in April, with panellists reporting higher prices paid for metals, chemicals and plastics.

The rate of cost inflation gathered pace since March and was above the average recorded over the current sequence of rises. Less than 5% of manufacturers raised their output prices in April, while almost 93% signalled no change. Where selling prices were raised, there were reports of the passing on of higher cost burdens to clients. Firms that reduced charges mentioned attempts to win new customers.

Finally, goods producers were at their most optimistic since last November, with capacity expansion plans, new product developments, greater advertising and favourable market conditions expected to underpin output growth in the year ahead.

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