In a bright spot for India’s economy, the manufacturing PMI climbed to 56.9 in February – its loftiest level in four months – propelled by vigorous domestic demand. S&P Global’s seasonally adjusted HSBC figures show a leap from January’s 55.4, highlighting renewed sector vitality.
The data reveals blistering growth in new orders and output, with production hitting its fastest pace since October. This surge surpassed decade-long averages, fueled by capacity boosts, technological advancements, and a deluge of local business.
HSBC Chief India Economist Pranjul Bhandari highlighted the ‘accelerated manufacturing activity’ in February, noting consecutive months of quicker production supported by hearty home orders.
Exports, however, lagged with growth dipping to a 17-month low, aligning nearer to long-term norms. This trend, persisting from 2024’s second half, nudged employment growth lower.
Manufacturers credited expanded client bases, promotional drives, and shifting consumer patterns for the order upswing. Efficiency gains and new workloads underpinned the production rally.
Purchasing expenses increased moderately, in line with prior months, enabling output price hikes beyond usual levels. While Asia, Europe, the Middle East, and US markets contributed to sales gains, export momentum waned.
Tracking core metrics like orders, output, hiring, supplier performance, and stocks, the PMI offers a reliable health check. Domestic demand’s dominance suggests India’s factories are gearing up for a strong year.