A manufacturing boom propelled India’s HSBC Flash PMI to a three-month summit of 59.3 in February, eclipsing January’s 58.4 and delivering the briskest expansion since September. Friday’s S&P data underscores private sector vitality amid evolving economic currents.
Output acceleration in factories was the standout, with services maintaining prior-month steadiness. ‘Manufacturing thrived on production strength and new domestic inflows,’ observed HSBC India Chief Economist Pranjul Bhandari. Both sectors brimmed with confidence despite inflation’s bite.
Total orders and exports expanded at top speeds—new business at its quickest since November, international inflows peaking post-August. Respondents credited firm demand, tourism upticks, marketing wins, and client interest. Manufacturers notched four-month-best sales growth, dwarfing services’ 13-month low hampered by rivalry and budget options.
Firms responded decisively: hiring swelled, purchases climbed to four-month highs. Supplier reliability persisted for 24 months, aiding raw material stockpiles. Costs and prices rose sharply, but optimism for business prospects soared.
This data snapshot reveals India’s economy firing on multiple cylinders. As global headwinds loom, the PMI’s signal of robust health offers reassurance, potentially influencing Reserve Bank decisions on interest rates and growth forecasts.