Flash Composite PMI Hits 7-Month High in February at 61.5: Reveals Positive Trends Despite Job Market Concerns

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.