Factory floors across India buzzed with activity in February, pushing the HSBC India Manufacturing PMI to a four-month peak of 56.9. Up from 55.4 in January, the index reflects a powerhouse performance anchored in booming domestic demand, according to S&P Global.
New orders flooded in at one of the fastest rates seen since last fall, sparking the sector’s most vigorous production growth in four months. This expansion comfortably beat long-run averages, driven by heightened client demands and strategic business pushes.
‘We saw faster manufacturing growth in February, backed by solid domestic orders for the second month running,’ observed HSBC’s Pranjul Bhandari. Her comments capture the upbeat sentiment permeating the industry.
On the flip side, export orders continued their downward trajectory that began in mid-2024, registering the slowest expansion in over a year. This moderation tempered job creation somewhat, as firms focused inward.
Survey respondents pointed to better efficiencies, fresh contracts, and tech upgrades as key drivers behind output spikes. Marketing efforts and evolving customer preferences further amplified order inflows.
Cost pressures held steady at a middling pace, mirroring January trends, while selling prices climbed above historical benchmarks. Demand from key markets including Asia, Europe, the Middle East, and America bolstered external sales, though growth remained subdued.
As a forward-looking indicator blending orders, production, jobs, deliveries, and stocks, the PMI underscores India’s manufacturing resilience. With domestic engines firing on all cylinders, expectations build for sustained industrial vigor ahead.