Report Wire

Tag: HSBC India Report

  • India’s Services PMI at 58.1 Signals Continued Expansion

    The services industry in India showed impressive staying power in February, registering a PMI of 58.1 on HSBC’s radar. This near-identical repeat of January’s performance confirms the sector’s growth streak, with the index firmly in expansion mode beyond the 50 threshold.

    Challenges emerged in new orders, which hit a 13-month trough from competitive intensity, but holistic demand held positive. Enhanced client interactions and marketing firepower fueled bookings for several players, complemented by brisker foreign sales that spurred hiring.

    HSBC India’s Pranjul Bhandari unpacked the survey: ‘Services PMI at 58.1 indicates unwavering strength, supported by global demand upswing despite local order moderation.’ Operational scaling through new hires reflected confidence in pipeline visibility.

    Private sector activity hit a three-month peak at composite PMI 58.9, riding manufacturing’s wave. Finance and insurance dominated services with peak growth in activity and inflows, though tempered versus peaks. Laggards included real estate and professional services, revealing divergent trends.

    Stable outlooks cap a report reinforcing India’s economic resilience. Services, a GDP heavyweight, continues to drive progress, positioning the country favorably against international slowdowns and fueling optimism for policy continuity.

  • India’s PMI Climbs to 4-Month High: Domestic Demand Fuels Factory Boom

    India’s industrial heartbeat strengthened in February as the Manufacturing PMI rocketed to 56.9, the strongest in four months and a clear step up from January’s 55.4. S&P Global attributes this leap to an explosion in domestic orders, revitalizing production lines nationwide.

    Order books swelled at historically brisk speeds – the quickest since October – igniting output growth that outstripped long-term trends. Firms ramped up via smarter operations, tech infusions, and surging workloads.

    ‘February delivered faster manufacturing pace, with production accelerating for two months straight on strong local demand,’ said Pranjul Bhandari, HSBC’s top India economist.

    Contrastingly, new export orders decelerated to their mildest rise in 17 months, hugging long-run averages after a slump starting mid-2024. Job additions softened as a result.

    Strong marketing, client expansions, and need-driven orders powered the domestic surge. External demand from Asia, Europe, the Middle East, and the Americas grew, but couldn’t match home turf gains.

    Input costs edged up mildly, akin to January, while firms hiked prices more aggressively than usual. The PMI’s holistic view – encompassing orders, production, employment, deliveries, and inventories – signals robust health.

    Looking forward, this domestic-led resurgence positions India’s manufacturing sector for enduring growth, potentially bolstering broader economic prospects.