India’s industrial heartbeat strengthened in February as the Manufacturing PMI rocketed to 56.9, the strongest in four months and a clear step up from January’s 55.4. S&P Global attributes this leap to an explosion in domestic orders, revitalizing production lines nationwide.
Order books swelled at historically brisk speeds – the quickest since October – igniting output growth that outstripped long-term trends. Firms ramped up via smarter operations, tech infusions, and surging workloads.
‘February delivered faster manufacturing pace, with production accelerating for two months straight on strong local demand,’ said Pranjul Bhandari, HSBC’s top India economist.
Contrastingly, new export orders decelerated to their mildest rise in 17 months, hugging long-run averages after a slump starting mid-2024. Job additions softened as a result.
Strong marketing, client expansions, and need-driven orders powered the domestic surge. External demand from Asia, Europe, the Middle East, and the Americas grew, but couldn’t match home turf gains.
Input costs edged up mildly, akin to January, while firms hiked prices more aggressively than usual. The PMI’s holistic view – encompassing orders, production, employment, deliveries, and inventories – signals robust health.
Looking forward, this domestic-led resurgence positions India’s manufacturing sector for enduring growth, potentially bolstering broader economic prospects.