Manufacturing PMI Increased In February To 54.9

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index® was at 54.9 in February, up from 54.0 in January, signalling a stronger improvement in the sector. As per the release, growth has remained robust in each of the latest eight months, with the figure above its long run average of 53.6.

Also, another parameter signifying strength is that the firms responded to strong increases in new work orders by ramping up production, input buying and stocks of purchases. Employment fell at the softest pace for three months, while favourable demand conditions supported an improvement in sentiment which reached the strongest since last October.

On the price front, as the demand for raw materials strengthened there is seen another significant rate of input price inflation.

Commenting on the latest survey results, Shreeya Patel, Economist at IHS Markit, said:"Latest PMI data for India's manufacturing sector revealed an improvement in operating conditions in February. Output and new orders expanded at stronger rates, while buying activity continued. At the same time, sustained increases in backlogs could lead to higher employment levels in the months ahead should capacity pressures continue.

GoodReturns.in