New Delhi’s economic pulse quickened in February as the HSBC Flash India Composite PMI reached 59.3, its highest in three months and a step up from January’s 58.4. S&P-released data on Friday paints a picture of vigorous private sector activity led by manufacturing prowess.
Factory floors hummed with increased output, propelling the headline index to its most rapid growth since September. Services growth, meanwhile, mirrored January’s pace amid softer domestic momentum. HSBC’s Pranjul Bhandari emphasized, ‘Strong production and fresh domestic orders bolstered manufacturing resilience.’
Optimism reigned supreme among firms, undeterred by rising prices. New orders flooded in at the fastest rate since November, driven by solid demand, tourism recovery, and proactive marketing. International sales jumped sharply, especially in services, marking the best export performance since August.
Goods producers led the charge with four-month high sales increases, far surpassing services which dipped to a 13-month trough due to competition and affordable rivals. This prompted aggressive hiring and purchasing; input buying hit a four-month peak. Suppliers’ on-time deliveries, a streak unbroken for two years, enabled stockpile builds.
Inflationary pressures mounted on inputs and selling prices, yet future outlooks brightened. This PMI surge reflects India’s private sector dynamism, setting a positive tone for policymakers and investors tracking post-pandemic recovery.