India’s manufacturing sector growth slips to 14-month low

India’s manufacturing sector growth fell to a 14-month low in February amid softer increase in new orders and production, a monthly survey said on Monday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) registered 56.3 in February, down from 57.7 in January, but remained firmly within the ‘expansionary’ territory.

In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

“Although output growth slowed to the weakest level since December 2023, overall momentum in India’s manufacturing sector remained broadly positive in February,” said Pranjul Bhandari, Chief India Economist at HSBC.

In a positive, favourable domestic and international demand prompted firms to increase purchasing activity and hire extra workers.