Indian Economy News

February manufacturing PMI rises to 56.9 on increased production and new orders.

  • IBEF
  • March 4, 2024

India's manufacturing sector exhibited robust growth in February, with the HSBC India Manufacturing PMI reaching 56.9, the highest since October. This marks 32 consecutive months of expansion, as the industry's production and sales accelerated, led by a noteworthy uptick in the capital goods category. The report noted that production grew fastest in five months, supported by increased sales and the strongest expansion in new export orders in 21 months. Both domestic and global demand, with notable surges from countries like Australia, China, the United States, and the United Arab Emirates, fuelled the positive momentum.

Despite a slightly moderated outlook for the year ahead, the report highlighted improved margins for manufacturing firms due to the lowest input price inflation since July 2020. The sector faced challenges in generating additional employment despite a positive business sentiment. However, cost pressures eased to the slowest pace since mid-2020, allowing firms to build up stocks of raw materials. The output price index indicated a moderation in inflationary pressures, reaching the joint lowest level since March 2023, reflecting a favourable scenario for the manufacturing sector in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.