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As on : 03-Mar-2025

Economy - Reports
03-Mar-2025 11:15

Indian manufacturing remain strong with 56.3 PMI in February

The Indian manufacturing sector's strong start to 2025 continued in February. Despite slowing to the weakest since December 2023, rates of expansion in output and sales remained elevated in the context of the survey's 20-year history.

Favorable domestic and international demand prompted firms to increase purchasing activity and hire extra workers at above-trend rates. However, demand buoyancy kept charge inflation at an elevated level despite softer cost pressures.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) registered 56.3 in February, down from 57.7 in January but still indicative of a further robust improvement in the health of the sector.

Business conditions improved across all three monitored sub-sectors: consumer, intermediate and investment goods.

Output rose halfway through the final fiscal quarter, extending the current growth streak to 44 months.

February data showed a forty-fourth consecutive rise in new business intakes, which panel members linked to strong client demand and efforts to price better than their competitors.

In response to the upturn in new orders, manufacturers continued to expand their workforce numbers in February, extending the current period of employment growth to a year.

Indian manufacturers faced another rise in input costs, with frequent reports of greater bamboo, leather, marketing, rubber and Telecom prices.

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

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