East reported the lowest growth rate (4%), while the rest of the country grew by 6%.
The latest CII and BCG monthly growth survey of CXOs across sectors to track monthly sales performance, shows that April sales grew by 7% across respondents, reflecting improving growth trajectory after the jolt provided by demonetisation. New order inflows (reflective of future growth) saw 6.4% growth.
East reported the lowest growth rate (4%), while the rest of the country grew by 6%. Most sectors witnessed strong growth in April—building materials (9.4%), material handling equipment (3.8%), engineering products (6.2%), welding (13.5%), metals & mining (7.5%), auto components (5.3%).
From the perspective of growth outlook for FY17-18, most expect either north or west or south to be top-performing regions. Only about 12% expect the east to be a top-performing region for them. Participants across industries are positive with respect to long-term impact of GST implementation. However, the lack of clarity about exact provisions remains a concern for the short term.
As far as industry perspectives are concerned, building materials sector witnessed good growth of 9.4%, higher than the March growth of 6%. North witnessed the best performance, continuing the trend from March; whereas the south showed relatively poorer growth of 3%.
In the material handling equipment sector, respondents witnessed a moderate 3.8% growth, after the spike reported in March (7.5%). The highest value growth was reported once again in the eastern region (9%); with the northern region under-performing at -1% rate. Big-ticket orders drove revenue in the east; while western region showed orders of lower ticket sizes.
The engineering products sector displayed moderately strong growth of 6.2%, while the welding sector experienced an impressive value growth of 14%, mainly driven by big-ticket orders with volume growth stable at 5% from previous month. The auto-components sector showed moderate performance, with a growth of 5%. In sum, April continued on the growth path showed in the previous months.
—Arun Bruce, Mani Singhal (BCG) and Sangita Das (CII)