Financial News: India's Manufacturing Sector Maintains Strong Growth Momen

India's Manufacturing Sector Maintains Strong Growth Momentum

03/01/2023 - 01:58:00 (RTTNews)

(RTTNews) - ?India's factory activity continued to expand strongly in February, driven by robust growth in output and new orders, the results of the purchasing managers' survey from S&P Global showed on Wednesday.

The manufacturing Purchasing Managers' Index, or PMI, dropped slightly to 55.3 in February from 55.4 in January. However, a reading above 50 indicates expansion in the sector.

In February, new orders increased for the 20th consecutive month, owing to favorable demand conditions and successful marketing campaigns.

Domestic demand drove the continued increase in new orders, while export orders fell slightly from January.

Output also expanded further and at a sharp pace on the back of sustained rises in new orders, favorable underlying demand, and technological progress.

On the price front, input cost inflation rose to a 4-month high, linked to higher prices for electronic components, energy, foodstuffs, metals and textiles.

Nonetheless, the rate of inflation was below its long-run average and among the weakest in over two years. Selling prices, meanwhile, increased at the softest rate in three months.

Firms continued to increase input purchases, while job numbers rose only marginally due to a general lack of demand for operating capacity.

Manufacturers remain optimistic about the production outlook, expecting demand strength, new product releases, and investments to bode well for growth prospects.

Official data released Tuesday showed that the Indian economy grew at a slower rate of 4.4 percent annually in the December quarter of 2022, following a 6.3 percent expansion in the third quarter.

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