India’s Manufacturing Growth Rebounds in January

#Growth #ManufacturingPMI #ManufacturingOutput #Demand #IndianManufacturingSector

Manufacturers saw a major rise in new orders, driven by strong domestic demand and higher global sales.

February 2025 : The HSBC India Manufacturing PMI increased from 56.4 in December to 57.7 in January. This signaled strong sector health. Growth was the fastest since July and above the long-term average.

Indian goods producers rebounded in January after slower growth in December. New orders rose at the fastest pace since July. Export growth was the steepest in nearly 14 years. Production expanded sharply. Buying levels increased, and job creation hit a record high.

Cost pressures eased to an 11-month low. However, selling prices rose due to strong demand. Business confidence improved.

Manufacturers saw a major rise in new orders, driven by strong domestic demand and higher global sales. New business grew at the fastest rate in six months.

International demand surged, with gains reported worldwide. Export order growth was the strongest in nearly 14 years.

Production volumes increased sharply, reaching the highest level since October 2024.

Business confidence rose. Nearly 32% of firms expected growth, while only 1% predicted a decline. Firms cited strong demand, better customer relations, favorable economic conditions, and marketing efforts.

Robust sales and positive outlooks led to increased hiring. Employment grew at the fastest pace in nearly 20 years.

Manufacturers increased input purchases at the strongest rate in three months. Suppliers delivered materials on time, leading to the best vendor performance in eight months.

Input stock accumulation was the fastest since October 2024. However, finished goods inventories declined for a second straight month. Demand outpaced production, forcing firms to use warehouse stocks. The depletion rate was the sharpest in almost three years.

Input costs rose due to higher freight, labor, and material expenses. Inflation was modest and the weakest since February 2024.

Selling prices increased at the slowest rate in four months but remained high. Companies attributed price hikes to strong client demand.

Manufacturers managed workloads well, with only a slight increase in outstanding business. Strong hiring helped companies stay ahead of demand.

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