India’s economy performed better in April, with the Moneycontrol Eco Pulse Index rising to 51.6 from 49.2 in the previous month, despite disruptions from the West Asia crisis continuing for yet another month.A reading above 50 signals expansion, indicating that economic momentum recovered after March’s contraction as manufacturing, exports and parts of domestic consumption continued to support activity.What’s moving the index?
Indicator
Mar-26
Apr-26
PMI Manufacturing53.954.7PMI Services57.558.8PMI Composite57.058.2Four-wheeler sales25.811.6Tractor sales11.124.5Two-wheeler sales29.513.0Three-wheeler registrations27.327.2Petrol consumption7.66.8Diesel consumption8.00.9ATF consumption0.7-0.1Naukri Job Speak Index9.25.8Electricity demand1.73.9E-way bill generation12.911.8Non-food credit16.916.3UPI volume23.724.9Credit card payments7.10.7MGNREGA work demanded-21.8-36.0Major Port Cargo Traffic1.12.5Core sector output1.21.7Exports-7.413.8Imports-6.010.0Wholesale inflation3.98.3Urban unemployment6.86.6
The recovery was led by an improvement in business activity. Manufacturing PMI rose to 54.7 in April from 53.9 in March, while services PMI improved to 58.8 from 57.5. The composite PMI also rose to 58.2, suggesting that private-sector activity remained resilient despite global uncertainty.Exports provided a major boost after March’s weakness. Merchandise exports grew 13.8% in April, compared with a contraction of 7.4% in the previous month.Consumption indicators remained supportive, although momentum moderated in some segments. Four-wheeler sales grew 11.6%, slower than 25.8% in March, while two-wheeler sales rose 13% compared with 29.5% earlier. Tractor sales, however, strengthened to 24.5%, pointing to stronger rural demand.Financial activity stayed firm. Non-food credit grew 16.3%, while UPI volumes rose 24.9%, higher than 23.7% in March. However, credit card payments slowed sharply to 0.7% from 7.1%, indicating some softness in discretionary urban spending.Infrastructure indicators showed only a modest improvement. Core sector output rose 1.7% in April, compared with 1.2% in March, while electricity demand growth improved to 3.9% from 1.7%. Major port cargo traffic also rose by 2.5%.Labour market indicators were mixed. Urban unemployment eased to 6.6% from 6.8%, while youth unemployment declined to 18% from 18.4%. However, the Naukri JobSpeak Index slowed to 5.8%, suggesting moderation in formal hiring momentum.Inflation remained a key pressure point. Wholesale inflation accelerated to 8.3% in April from 3.9% in March, reflecting the impact of higher commodity prices and supply disruptions linked to the West Asia crisis.The April reading suggests that India’s economy regained momentum after March’s contraction, but the recovery remains uneven. Manufacturing, exports and rural demand supported the index, while softer credit card spending, slower e-way bill growth and weak fuel indicators pointed to areas of caution.The government allowed some pass-through of crude prices, with pump prices rising by nearly ₹4 for both diesel and petrol. The increased prices are likely to start reflecting in consumption, with no end to the West Asia crisis in sight yet.Moreover, adverse weather conditions such as El Niño may hamper rural consumption.The Moneycontrol Eco Pulse tracks high-frequency indicators across consumption, manufacturing, labour markets, trade and financial activity to provide an early monthly snapshot of India’s economic momentum ahead of official GDP releases.
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