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India’s private sector manufacturing activity, as measured by the HSBC Manufacturing Purchasing Managers Index, slowed to 56.3 on sales growing the slowest in more than a year in February 2025, according to a statement from HSBC. The metric was 57.7 in the previous month.
Factory activity levels hit a 12-month low in December
A value above 50 implies growth and the PMI has been in the growth territory for 44 months now.
The manufacturing sales and output PMI was down to a 14 month low.
“Robust global demand continued to boost growth in the Indian manufacturing sector, which increased its purchasing activity and employment. Business expectations also remained very strong, with nearly one-third of survey participants foreseeing greater output volumes in the year ahead. Although output growth slowed to the weakest level since December 2023, overall momentum in India’s manufacturing sector remained broadly positive in February.” said Pranjul Bhandari, India Chief Economist at HSBC.
Manufacturers observed increase in new orders. Export orders on strong global demand in February. Increased export orders also led to increased hiring reflecting an overall robust business situation.
Industrial output growth skids to four-month low of 3.2%
Manufacturers also faced higher input costs, especially in bamboo, rubber, leather, marketing and telecom prices. Companies also carried higher labour costs to clients, HSBC said in its release.
Published – March 03, 2025 12:06 pm IST