Marking a forty-seventh consecutive month of rise and the quickest rate in nine months, the seasonally adjusted HSBC manufacturing Purchasing Managers’ Index (PMI) rose to 54.2 in February, up from 53.2 in January. The numbers depicted a further improvement in business conditions in the country.
The PMI index, which gauges business activity in Indian factories utilities, has held above the 50 mark for almost four years. The pace of expansion was solid with approximately 29% of monitored companies reporting higher levels of new orders and 14% noting a decrease, new orders increased in line with stronger demand, maintained product quality and the launch of new products.
The new orders index rose to 56.3 last month from 55.9 in January but despite posting a solid increase, total export business grew at the slowest pace in the current six-month sequence of expansion.
Manufacturers increased their input buying during February, marking a 47-month sequence of expansion. The PMI survey showed costs of raw materials grew at a steady pace, while prices charged grew at a faster rate during February, raw materials including plastics and fuel all rose in price.
The survey further stated that employment in the Indian manufacturing sector expanded slightly during February. Firms stated that payroll numbers were increased in tandem with higher production requirements.
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