Manufacturing activity picks up speed in February

India saw a boost in activities during the month of February with an increased demand for new orders buoyed by higher requirements and better production.

March 3, 2022

The IHS Markit India Manufacturing Purchasing Managers Index (PMI) increased to 54.9% from 54% during January.

The rates of expansion have picked up at intermediate and capital goods firms however, for the consumer goods manufactures there seems to be a gradual increase.

As per the data collated for the month of February, there’s a considerable increase in overall operating conditions for the eighth consecutive month.

The purchase price inflation was brisk at first, later came down to a six-month low as per the report.

The manufacturing sector in India saw a boost in activities during the month of February with an increased demand for new orders buoyed by higher requirements and better production, according to the private survey held this week. 

The IHS Markit India Manufacturing  PMI increased to 54.9% from 54% during January. The index reading above 50 indicates expansion while below that is an indication of contraction in the PMI. As per February data, there’s a considerable increase in overall operating conditions for the eighth consecutive month. 

The rates of expansion has picked up at intermediate and capital goods firms however, for the consumer goods manufacturers there seems to be a gradual increase.The demand from certain international clients also increased quickly during the last three months while employment levels decreased in February. 

The purchase price inflation was brisk at first but later came down to a six-month low as per the report.

The IHS Markit also indicated that an improvement was seen midway through the quarter, underpinned by business expansion plans, a return to normality and hopes for fruitful marketing. However, the degree of optimism remained below its long-run average, as per the report.