The Flash Purchasing Managers’ Index (PMI) for India, compiled by HSBC, reached a seven-month high of 61.5 in February, indicating strong performance in both manufacturing and services sectors. However, stagnant job growth raises concerns despite robust economic activity.
PMI Figures
- Composite PMI rose to 61.5 in February from 61.2 in January, reflecting improved performance in manufacturing and services.
- Flash Manufacturing PMI increased to 60.4, up from 59.7 in January.
- Flash Services PMI climbed to 62 from 60.4, indicating growth in the services sector.
Job Market Concerns
- Private sector companies refrained from hiring, ending a 20-month streak of job creation.
- Despite growing new orders, payroll numbers remained unchanged, highlighting workforce sufficiency for current demands.
Price Trends
- Rate of charge inflation for goods and services weakened to a one-year low, attributed to a lack of cost pressures.
- Input prices rose at the slowest pace in three-and-a-half years, indicating easing cost burdens for businesses.
New Orders and Export Performance
- New orders originated from both domestic and global markets, with stronger performance observed in international markets.
- External sales were driven by increased demand from various regions, including Africa, Asia, Australia, Europe, the Americas, and the Middle East.
Business Confidence
- Overall business confidence declined from January’s four-month high, though remaining optimistic about growth prospects.
- Manufacturers showed stronger optimism compared to service providers, reflecting contrasting trends in business sentiment.
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