India Manufacturing Growth Hits 4-Month High

(RTTNews) - India's factory activity growth accelerated further in February to a 4-month high, driven by a substantial improvement in domestic demand, survey data from S&P Global showed on Monday.

The HSBC manufacturing Purchasing Managers' Index rose to 56.9 in February from 55.4 in January. A score above 50 indicates expansion in the sector.

New orders continued to increase in February on the back of demand buoyancy, marketing initiatives, and rising client requirements. On a similar track, output grew at the quickest rate in four months, collectively boosted by efficiency improvements, healthy underlying demand, rising intakes of new work, and tech investment. Meanwhile, the growth in new export orders eased to a 17-month low.

In line with rising new orders, Indian manufacturers raised their activity and employment level in February.

On the price front, input prices increased due to higher costs for labor, materials, and transportation, though the rate of inflation was moderate. As a result, selling price inflation accelerated.