February brought renewed vigor to India’s economy, with the HSBC Flash India PMI vaulting to 59.3—its loftiest in three months— from 58.4 in January. Unveiled Friday via S&P, the figures spotlight a manufacturing-led resurgence in private sector fortunes.
The index’s post-September strongest monthly gain stemmed from factory output spikes, as services activity plateaued. Pranjul Bhandari, HSBC’s top India economist, pointed to ‘potent production and domestic order support’ fortifying manufacturers. Future sentiment stayed buoyant across the board.
A torrent of new orders, the swiftest since November, and export leaps—services’ best since August—spurred action. Growth factors included demand resilience, tourism revival, sales pushes, and inquiry surges. Goods makers surged with peak-four-month sales, contrasting services’ competitive slowdown to yearly lows.
Hiring and procurement ramped up markedly; buying volumes touched four-month crests. Two years of punctual supplier deliveries facilitated inventory expansions. Though input and output inflation accelerated, firms eyed expansion ahead.
In a landscape of global uncertainties, this PMI milestone affirms India’s private sector momentum. It bodes well for employment, investment, and GDP trajectories, with eyes now on sustaining this trajectory through policy support and demand sustenance.