India’s manufacturing growth hits five-month high in February on strong demand | Top Vip News

Growth in India’s manufacturing sector hit a five-month high in February amid a sharper rebound in factory output and sales, supported by both domestic and external demand, a monthly survey showed on Friday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from 56.5 in January to 56.9 in February, pointing to the biggest improvement in the sector’s health since September 2023.

In Purchasing Managers’ Index (PMI) parlance, a figure above 50 means expansion, while a score below 50 denotes contraction. According to the survey, production rose at the fastest pace in five months and fueled the fastest rise in sales since last September and the strongest expansion in new export orders in 21 months.

“HSBC’s final India manufacturing PMI indicates that output growth continued to be strong, supported by domestic and external demand,” said Ines Lam, economist at HSBC. Despite the pick-up in growth momentum, manufacturing employment in India barely changed. “Producers of goods mentioned that payroll figures were sufficient for current needs,” the survey states.

On the inflation front, purchasing cost inflation retreated to its lowest level in 43 months and selling costs increased to a lesser extent as a result. Input costs saw the slowest rise in more than three and a half years. Manufacturing companies’ margins improved as input price inflation fell to the lowest level since July 2020, Lam said.

In addition to strong domestic demand, new export orders rose at the fastest pace in almost two years, with Australia, Bangladesh, Brazil, Canada, mainland China, Europe, Indonesia, the United States and the United Arab Emirates the sources of growth. demand. Manufacturing companies increased their purchasing levels in response to higher production requirements, sustained increases in sales and to create safety stocks, according to the survey. Looking ahead, manufacturers have a bullish business outlook amid buoyant demand conditions.

February survey data indicated sustained optimism among manufacturers regarding production prospects for next year. The overall level of confidence was the second highest since December 2022. “Encouraged by strong demand and improving profit margins, manufacturers have an optimistic outlook on future business conditions,” Lam added.

The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.