Manufacturing activity slows to a 14-month low in February: Survey

NEW DELHI: Activity in the nation’s manufacturing sector grew at its slowest tempo in 14 months as manufacturing and new orders moderated nevertheless it nonetheless remained sturdy, a survey confirmed on Monday.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) registered a studying of 56.3 in Feb, down from 57.7 in Jan, however nonetheless indicative of additional enchancment in the well being of the sector. The 50-point mark separates enlargement from contraction in the survey, which is compiled from responses to questionnaires despatched to 400 manufacturing corporations.
The Feb information confirmed a forty-fourth consecutive rise in new enterprise intakes, which panel members linked to sturdy consumer demand and efforts to worth higher than their rivals. The general tempo of progress receded to the slowest since Dec final yr, however was above its long-run common.
“Although output growth slowed to the weakest level since Dec 2023, overall momentum in India’s manufacturing sector remained broadly positive in Feb,” stated Pranjul Bhandari, chief India economist at HSBC. New export orders rose strongly in Feb as producers continued to capitalise on sturdy world demand for his or her items. Although softer than Jan’s close to 14-year excessive, the tempo of enlargement was sharp, the survey outcomes confirmed.
In response to the upturn in new orders, producers continued to develop their workforce numbers in Feb, extending the interval of employment progress to a yr. The charge of job-creation was the second-best in the collection historical past, behind solely that recorded in January.