India’s Manufacturing Purchasing Managers’ Index (PMI) in February marked the slowest expansion since December 2023, falling to 56.3, data compiled by S&P Global and released by HSBC said on Monday.
Purchasing Managers’ Index (photo:X)
India’s Manufacturing Purchasing Managers’ Index (PMI) in February marked the slowest expansion since December 2023, falling to 56.3, data compiled by S&P Global and released by HSBC said on Monday.
The decline was driven by weaker growth in output and sales, along with a slowdown in input purchasing to a 14-month low.
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Although demand remained strong, inflationary pressures persisted, with firms passing higher labour costs to clients, it said.
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New export orders rose strongly in February as manufacturers continued to capitalise on robust global demand for their goods.
Although softer than January’s near 14-year high, the pace of expansion was sharp. Despite lower numbers, the seasonally adjusted PMI report indicated a robust improvement in the health of the Indian manufacturing sector.
The report registered an improvement for businesses across all three monitored sub-sectors: consumer, intermediate and investment goods.
Further, the February data showed a 44th consecutive rise in new business intakes, which panel members linked to strong client demand and efforts to price better than their competitors.
The overall pace of growth receded to the slowest since December 2023 but was above its long-run average.
In January, the manufacturing PMI stood at 57.7, recovering sharply from a 12-month low of 56.4 in December.
This rise was fuelled by the steepest upturn in exports in nearly 14 years and by new orders which rose at the quickest pace since last July.
As per the recent government’s data, India’s gross domestic product grew by 6.2 per cent in the October- December quarter of financial year 2024-25. It was an increase from the previous quarter’s 5.6 per cent growth.
The rise comes after GDP growth fell to a seven-quarter low of 5.4 per cent in Q2 FY25, significantly below estimates.
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