India's Manufacturing PMI Hits 5-Month High Reaching 56.9 in February

India’s manufacturing sector continued its expansion in February, as indicated by the HSBC Purchasing Managers’ Index (PMI) reaching 56.9, marking its highest level in five months. This data, released on March 1st, surpassed the initial estimate of 56.7 announced on February 22nd.

Key Points

Consistent Expansion: The February manufacturing PMI of 56.9 extends the sector’s expansion streak for the 32nd consecutive month, remaining above the critical threshold of 50, which separates growth from contraction.
GDP Growth: The release of the manufacturing PMI closely follows the announcement by the statistics ministry regarding India’s GDP growth of 8.4 percent in the October-December 2023 period. However, it notes a moderation in the manufacturing sector’s gross value added growth, which dropped to 11.6 percent from 14.4 percent in the previous quarter.
Trend Analysis: In comparison to the previous quarters, the manufacturing PMI averaged at 57.9 in July-September 2023 and 55.5 in the subsequent quarter. The first two months of 2024 have shown a consistent average of 56.7, indicating a stable performance.