NEW DELHI: Activity in the country’s manufacturing sector grew at its slowest pace in 14 months as production and new orders moderated but it still remained robust, a survey showed on Monday.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) registered a reading of 56.3 in Feb, down from 57.7 in Jan, but still indicative of further improvement in the health of the sector. The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 manufacturing firms.
The Feb data showed a forty-fourth consecutive rise in new business intakes, which panel members linked to strong client demand and efforts to price better than their competitors. The overall pace of growth receded to the slowest since Dec last year, but was above its long-run average.
“Although output growth slowed to the weakest level since Dec 2023, overall momentum in India’s manufacturing sector remained broadly positive in Feb,” said Pranjul Bhandari, chief India economist at HSBC. New export orders rose strongly in Feb as manufacturers continued to capitalise on robust global demand for their goods. Although softer than Jan’s near 14-year high, the pace of expansion was sharp, the survey results showed.
In response to the upturn in new orders, manufacturers continued to expand their workforce numbers in Feb, extending the period of employment growth to a year. The rate of job-creation was the second-best in the series history, behind only that recorded in January.