India Manufacturing Growth Strongest In 5 Months

(RTTNews) - India's manufacturing activity expanded at the fastest pace in five months in February amid robust demand both domestically and internationally, survey results from S&P Global showed on Friday.

The seasonally adjusted HSBC Manufacturing Purchasing Managers' Index rose to 56.9 in February from 56.5 in January. A score above 50.0 indicates expansion.

Factory orders and output grew at the quickest pace in five months. The capital goods category was largely responsible for the significant increase in output. Favourable sales demand in February was attributed to fruitful marketing efforts.

New export orders grew at the fastest rate in nearly two years, linked to more demand from Australia, Bangladesh, Brazil, Canada, mainland China, Europe, Indonesia, the US, and the UAE.

On the price front, input price inflation eased to the lowest level since August 2020 amid price reductions for cotton and steel. As a result, selling prices rose at a slower rate.

Firms raised their purchasing activity at the fastest pace in five months in response to greater production requirements, sustained increases in sales, and to build safety stocks. However, manufacturing employment in India was little changed as payroll numbers were sufficient for current requirements.

Indian goods producers showed sustained optimism regarding the year-ahead outlook for production.