Manufacturing PMI: The Indian manufacturing sector made a strong start in January. After a little lethargy in December, now the exports have witnessed the fastest lead of nearly 14 years. The new orders have also increased at the fastest speed after July. Due to this, the Manufacturing Purchasing Manager Index (PMI) of January has reached the top level of six months.
According to the data released by HSBC and S&P Global, the PMI stood at 57.7 in January, compared to 56.4 in December. Explain that the PMI being above 50 reflects the growth in the sector, while the figure below 50 shows the decline.
This fast Indian producers of tremendous exports and orders have made a strong start of the new year, which is also considered a positive sign for the economy.
According to the survey, the cost pressure reached the lowest level of 11 months, but due to the rise in demand, companies increased the prices of their products. Along with this, business confidence has also been strengthened. There has been an increase in shopping and employment generation at the record level. The reason for the boom in new orders was better domestic demand and an increase in international sales. The special thing is that the international demand of Indian products recorded the fastest increase of 14 years.
Pranjul Bhandari, Chief India Economist of HSBC, said, “Both domestic and export demand remain strong, causing growth in new orders.” He further stated that the Employment PMI has indicated a strong job creation in the manufacturing sector. This index has reached the highest level since its launch.
The survey also stated that the input cost has declined for the second time, which has reduced the pressure on companies to increase the price of final products.
With this, companies have become more optimistic about the future. Around 32% of companies said that they are expecting growth, while only 1% of companies have feared a decrease in production.
According to the new survey, signs of growth in India’s manufacturing sector are very strong. Panel members say that demand will further promote this growth.
According to the survey, companies recruited a large number of new employees at the beginning of the fourth quarter of the financial year due to strong sales and positive predictions. This lead in employment has been the fastest in the last 20 years, indicating that activity in the manufacturing sector is at its peak.
In January, Indian companies showed a boom in the purchase of inputs, which has been the fastest in the last three months. Companies were successful in efforts to increase inventory as the suppliers delivered on time. According to the survey, the vendor performance was the best in the last eight months, while the deposition of input stocks reached the fastest level after October 2024.