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Growth of India's manufacturing sector slows down to 55.3 in February

01 Mar 2023 Evaluate

India's manufacturing sector activity slowed down in the month of February, with input cost inflation accelerating to a four-month high but there was a softer upturn in selling charges.  According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 55.3 in February from 55.4 in January.

The survey report further noted that manufacturers experienced an increase in new work intakes, amid accommodative demand conditions and successful marketing campaigns. The upturn stretched the current sequence of growth to 20 months. Moreover, the rate of expansion was sharp in the context of historical data and matched that seen in January.

As per the report, the domestic market was the main source of new business growth, as new orders from abroad increased only fractionally. The rise in international sales was the weakest in the current 11-month period of expansion. Companies signaled only mild pressure on their own operating capacities, with outstanding business increasing marginally in February.

On the price front, input costs in the manufacturing industry increased further, with firms mentioning higher prices for electronic components, energy, foodstuff, metals and textiles. Despite quickening to a four-month high, the rate of inflation was below its long-run average and among the weakest in over two years.

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