India manufacturing PMI growth in February at slowest pace in 4 months
- S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was at 55.3 in February, little-changed from 55.4 in January
India's manufacturing sector expanded at the slowest pace in four months in February. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was at 55.3 in February, little-changed from 55.4 in January and signalling a strong improvement in the health of the sector. The headline figure was also above its long-run average of 53.7.
“India's manufacturing industry sustained robust growth of output and new orders halfway through the final fiscal quarter, albeit with a notable slowdown in the rate of international sales expansion. Companies continued to scale up input purchases, while job numbers expanded only fractionally amid a general lack of pressure on operating capacities. Meanwhile, input cost inflation accelerated to a four-month high but there was a softer upturn in selling charges,” as per the report.
Overall, factory gate charges rose at a modest pace that was the slowest in three months and below the long-run series average. Data implied that the domestic market was the main source of new business growth, as new orders from abroad increased only fractionally. The rise in international sales was the weakest in the current 11-month period of expansion.
“Growth momentum in India's manufacturing industry was maintained in February, with new orders and output increasing at similar rates to January. Companies were confident in the resiliency of demand and continued to add to their inventories by purchasing additional inputs,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
Job creation failed to gain meaningful traction, however, as firms reportedly had sufficient staff to cope with current requirements. Indeed, there was only a marginal increase in their backlogs, he added.
“After slipping to a 26-month low last November, input cost inflation surged in every month since. The latest rise was historically subdued, however, and among the weakest in around two years. The survey showed some reluctance among manufacturers to pass on cost increases to clients, with output charge inflation easing since January,” said De Lima.
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Business NewsEconomyIndia manufacturing PMI growth in February at slowest pace in 4 months
First Published:1 Mar 2023, 10:54 AM IST
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