MUMBAI: The manufacturing sector growth has lost its momentum and has fallen to a 14-month low 56.3 in February, down from 57.7 in January, but still firmly within the expansion mode, according to a private reading of the purchasing managers index. This is the weakest reading since December 2023.
Yet the overall momentum in the manufacturing sector remains positive in the reporting month as any reading above 50 shows growth, HSBC said in a note Monday.
The steep deceleration in February comes amid softer increase in new orders and production, the monthly survey shows.
The seasonally-adjusted HSBC India manufacturing purchasing managers index (PMI) has printed in at 56.3 in February, down from 57.7 in January.
“Although output growth slowed to the weakest level since December 2023, overall momentum in the manufacturing sector remained broadly positive in February,” said Pranjul Bhandari, chief economist at HSBC India.
However, demand remains strong, and the expansion streak in output extended to 44 months on the trot. Manufacturers attributed the growth to improved demand, technological investments, and the launch of new projects.
Business conditions improved across all three key manufacturing segments–consumer goods, intermediate goods, and investment goods. Although the growth rate slowed compared to previous months, it remained above the long-term average.
