Manufacturing Activity Slows Down

India's manufacturing sector experienced its slowest growth in 14 months this February, as indicated by a recent survey. Despite the slowdown, the sector continues to show robust health, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) recording a figure of 56.3, down from 57.7 in January.

New Orders and Employment

The survey, which compiles responses from 400 manufacturing firms, highlighted a forty-fourth consecutive rise in new business intakes. This growth, although the slowest since December last year, remains above the long-run average. Manufacturers attributed this to strong client demand and competitive pricing strategies.

February also saw a significant increase in new export orders, as manufacturers capitalized on the robust global demand for their products. Furthermore, the sector continued to expand its workforce, marking a year of employment growth, with February's job-creation rate being the second-best in the series history.

Expert Insights

"Despite the slowdown in output growth, India's manufacturing sector maintained a broadly positive momentum in February," stated Pranjul Bhandari, chief India economist at HSBC. This optimism is supported by the ongoing expansion in new orders and employment, indicating a resilient manufacturing sector poised for future growth.