Indias Manufacturing Activity Continues To Expand

2 Mar 2022 , 11:51 AM

India’s manufacturing sector continued to expand. The IHS Markit India Manufacturing Purchasing Managers’ Index edged up to 54.9 in February against 54 in January, according to a monthly press release. A reading above 50 indicates economic expansion. Growth has now been seen in each of the latest eight months, with the headline figure remaining above its long-run average of 53.6, stated IHS Markit in its report. firms responded to strong increases in new work intakes by lifting production, input buying and stocks of purchases. Employment fell at the softest pace and favourable demand conditions improved sentiments to its strongest since October. Demand for raw materials strengthened to lead to another marked rate of input price inflation. There was a faster uplift to new business inflows.

There were some signs of capacity pressures at Indian manufacturers, with backlogs rising marginally. Despite this, and a pick-up in demand, employment decreased. The overall rate of job shedding was only fractional, however, the report added. Greater purchasing activity and expectations of higher output in the months ahead led to a solid rate of pre-production inventory growth.

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