<p>New Delhi: India’s manufacturing sector growth slumped to its lowest level in 14 months in February due to weak demand, even though exports increased at a healthy pace, as per an industry survey report released by S&P Global on Monday.</p>.<p>The Purchasing Managers’ Index (PMI) for manufacturing declined to 56.3 in February from 57.7 recorded in the previous month.</p>.<p>The overall pace of the manufacturing sector in February receded to its slowest since December 2023. Despite the slowdown, the sector witnessed a strong rate of expansion. A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p>.<p>“India recorded a 56.3 manufacturing PMI in February, down slightly from 57.7 during the prior month, but still firmly within expansionary territory,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.In Trump’s tariffs, an opportunity for India.<p>New export orders rose strongly in February, as manufacturers continued to capitalise on robust global demand for their goods. “Although softer than January's near 14-year high, the pace of expansion was sharp,” S&P Global said in its monthly survey report. PMI data is based on a survey conducted among around 400 manufacturers in the country.</p>.<p>Despite the growth slowdown, manufacturers remained optimistic. “Business expectations also remained very strong, with nearly one-third of survey participants foreseeing greater output volumes in the year ahead,” said Bhandari.</p>.<p>The surveyed firms expressed “strong optimism about growth prospects for the coming year, with client demand expected to remain positive and support output.”</p>.<p>A majority of the manufacturers increased their workforce during the month under review. In February, the rate of job creation was the second-best in the series history, behind only that recorded in January. One-in-ten firms signalled greater recruitment activity, while 1% of companies shed jobs during the month.</p>.<p>The overall rate of inflation eased for the third straight month in February to its weakest in a year. There was a sharp increase in prices of bamboo, leather, rubber, telecom and marketing costs. Concurrently, the rate of charge inflation was little-changed from January, remaining above both its long-run average and that seen for input costs. Firms passed on higher labour costs to clients, facilitated by favourable demand conditions.</p>.<p>Pre-production inventories rose strongly in February. This was supported by a twelfth successive improvement in average lead times. Meanwhile, firms' use of warehoused goods to fulfill demand needs was reflected in fall in finished goods stocks.</p>
<p>New Delhi: India’s manufacturing sector growth slumped to its lowest level in 14 months in February due to weak demand, even though exports increased at a healthy pace, as per an industry survey report released by S&P Global on Monday.</p>.<p>The Purchasing Managers’ Index (PMI) for manufacturing declined to 56.3 in February from 57.7 recorded in the previous month.</p>.<p>The overall pace of the manufacturing sector in February receded to its slowest since December 2023. Despite the slowdown, the sector witnessed a strong rate of expansion. A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p>.<p>“India recorded a 56.3 manufacturing PMI in February, down slightly from 57.7 during the prior month, but still firmly within expansionary territory,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.In Trump’s tariffs, an opportunity for India.<p>New export orders rose strongly in February, as manufacturers continued to capitalise on robust global demand for their goods. “Although softer than January's near 14-year high, the pace of expansion was sharp,” S&P Global said in its monthly survey report. PMI data is based on a survey conducted among around 400 manufacturers in the country.</p>.<p>Despite the growth slowdown, manufacturers remained optimistic. “Business expectations also remained very strong, with nearly one-third of survey participants foreseeing greater output volumes in the year ahead,” said Bhandari.</p>.<p>The surveyed firms expressed “strong optimism about growth prospects for the coming year, with client demand expected to remain positive and support output.”</p>.<p>A majority of the manufacturers increased their workforce during the month under review. In February, the rate of job creation was the second-best in the series history, behind only that recorded in January. One-in-ten firms signalled greater recruitment activity, while 1% of companies shed jobs during the month.</p>.<p>The overall rate of inflation eased for the third straight month in February to its weakest in a year. There was a sharp increase in prices of bamboo, leather, rubber, telecom and marketing costs. Concurrently, the rate of charge inflation was little-changed from January, remaining above both its long-run average and that seen for input costs. Firms passed on higher labour costs to clients, facilitated by favourable demand conditions.</p>.<p>Pre-production inventories rose strongly in February. This was supported by a twelfth successive improvement in average lead times. Meanwhile, firms' use of warehoused goods to fulfill demand needs was reflected in fall in finished goods stocks.</p>