India’s manufacturing activity strengthened further in February, with the Purchasing Managers’ Index (PMI) rising to a four-month high of 56.9, up from 55.4 in January, according to data released by HSBC.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index — a composite indicator derived from measures of new orders, output, employment, supplier delivery times and stocks of purchases — signalled a marked improvement in the health of the sector.
HSBC said the PMI rose from 55.4 in January to 56.9 in February, indicating stronger operating conditions across the manufacturing landscape.
The survey showed that robust domestic demand fuelled new order inflows and led to the strongest expansion in production volumes in four months. Goods producers attributed the increase in new business to demand buoyancy, marketing initiatives and rising client requirements. The pace of growth was described as historically elevated and the strongest since October last year.
Output expanded at the fastest rate in four months and remained above its long-run average. Panel members noted that efficiency gains, healthy underlying demand, higher inflows of new work and technology investments supported the rise in production volumes.
In response to rising workloads, firms increased input purchases, built up inventories and hired additional staff, reflecting confidence in sustained demand conditions.
However, the report pointed to a moderation in export performance. Growth in new export orders eased to its slowest pace in 17 months, with the rate of expansion converging towards its long-run average. Where export sales rose, companies cited gains from Asia, Europe, the Middle East and the United States.
HSBC noted that one area witnessing a slowdown was new export orders, with February recording the weakest increase in 17 months.
-Reuters
