In February, the IHS Markit India manufacturing PMI (Purchasing Managers Index) dipped to 57.5, although the PMI of India’s manufacturing sector was at 57.7 in January 2021.
The consistency of India’s Manufacturing PMI is accredited to the India’s expansion in the manufacturing activity and as a reflection of strengthening the V-shaped recovery that started in Q2 of 2020-2021.
The country's manufacturing sector activity climbed to a near eight-year high in January, driven by sharp rise in new business orders amid a rebound in demand conditions that led to rise in production and hiring activity.
Amid the restriction measures to contain the spread of coronavirus, output continued to grow, while new orders growth eased, but was nevertheless sharp and among the quickest seen over the past nine years.
At the same time, employment declined for the eleventh successive month. On the price front, input cost inflation accelerated to a 32-month high, due to a faster rise in prices of chemicals, metals, plastics and textiles.
As a result, output charges rose modestly. Finally, business sentiment remained positive, amid hopes that an improvement in economic conditions and the lifting of restrictions as the vaccination program expands.
