NEW DELHI: India’s manufacturing sector growth reached a five-month high in February, driven by increased factory production and sales, as per a HSBC survey.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers” Index (PMI) rose from 56.5 in January to 56.9 in February, indicating the strongest improvement in the sector’s health since September 2023.
The survey revealed that production experienced the fastest growth in five months, leading to an increase in sales and new export orders. Ines Lam, an economist at HSBC, stated that the strong production growth was supported by both domestic and external demand.
Despite the growth in the manufacturing sector, employment remained largely unchanged, with goods producers mentioning that current payroll numbers were sufficient.
Additionally, purchasing cost inflation decreased to a 43-month low, while selling charges increased to a lesser extent. Input costs also saw the slowest rise in over three-and-a-half years, resulting in improved margins for manufacturing firms.
New export orders rose at the fastest rate in nearly two years. Countries such as Australia, Bangladesh, Brazil, Canada, mainland China, Europe, Indonesia, the US, and UAE contributed to the growth in export orders.
Manufacturers scaled up their buying levels and creating safety stocks in response to the increased production requirements and sustained sales.
Manufacturers have a positive outlook for future business conditions due to buoyant demand. The survey data for February indicated sustained optimism among manufacturers regarding the year-ahead outlook for production. Lam highlighted that manufacturers are optimistic about future business conditions, driven by robust demand and improving profit margins.
The HSBC India Manufacturing PMI is compiled by S&P Global based on responses from around 400 manufacturers” purchasing managers. It serves as an important indicator of the health and growth of India’s manufacturing sector.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers” Index (PMI) rose from 56.5 in January to 56.9 in February, indicating the strongest improvement in the sector’s health since September 2023.
The survey revealed that production experienced the fastest growth in five months, leading to an increase in sales and new export orders. Ines Lam, an economist at HSBC, stated that the strong production growth was supported by both domestic and external demand.
Despite the growth in the manufacturing sector, employment remained largely unchanged, with goods producers mentioning that current payroll numbers were sufficient.
Additionally, purchasing cost inflation decreased to a 43-month low, while selling charges increased to a lesser extent. Input costs also saw the slowest rise in over three-and-a-half years, resulting in improved margins for manufacturing firms.
New export orders rose at the fastest rate in nearly two years. Countries such as Australia, Bangladesh, Brazil, Canada, mainland China, Europe, Indonesia, the US, and UAE contributed to the growth in export orders.
Manufacturers scaled up their buying levels and creating safety stocks in response to the increased production requirements and sustained sales.
Manufacturers have a positive outlook for future business conditions due to buoyant demand. The survey data for February indicated sustained optimism among manufacturers regarding the year-ahead outlook for production. Lam highlighted that manufacturers are optimistic about future business conditions, driven by robust demand and improving profit margins.
The HSBC India Manufacturing PMI is compiled by S&P Global based on responses from around 400 manufacturers” purchasing managers. It serves as an important indicator of the health and growth of India’s manufacturing sector.