India Manufacturing Growth Slowest In 14 Months

(RTTNews) - India's manufacturing activity continued to expand strongly in February, though at the weakest pace in more than a year, data compiled by S&P Global showed on Monday.

The HSBC final manufacturing Purchasing Managers' Index dropped to 56.3 in February from 57.7 in January. The flash reading was 57.1. However, a score above 50.0 indicates expansion.

Both output and new business grew at the weakest pace since December 2023. The overall growth in output was driven by sustained improvements in demand, tech investment, and the commissioning of new projects. The rise in new orders was backed by strong client demand and efforts to price better than their competitors.

In line with an upturn in new business, firms raised their workforce numbers in February, with the pace of job creation reaching the second-best in the series history. Despite an increase in purchasing activity, the rate of expansion was the weakest in fourteen months.

On the price front, input prices rose further amid greater bamboo, leather, marketing, rubber, and telecom prices. Nonetheless, the rate of inflation eased to its weakest in a year.

Indian manufacturers expressed strong optimism about growth prospects for the coming year, with client demand expected to remain positive and support output.