India’s service sector continues to grow during Feb, PMI eases to 60.6
India's service sector continued to grow during February as positive demand trends supported sales and business activity, according to a recent survey.
India’s manufacturing Purchasing Managers’ Index (PMI) recorded an 18-month low at 54.9 in December as against 56.0 in November, HSBC Purchasing Managers’ Index (PMI) compiled by S&P Global said.
Despite the decline, the measure of manufacturing sector activity in December remained above the critical threshold of 50, which signifies expansion and has been maintained for the 30th consecutive month.
The report highlights softer yet sharp increases in factory orders and output, coupled with a strengthening business confidence towards the year-ahead outlook.
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Furthermore, the input costs rose at the second-slowest rate in nearly three-and-a-half years, contributing to charge inflation at a nine-month low.
Despite the fall, the HSBC India Manufacturing PMI was indicative of a marked improvement in the health of the sector.
It highlighted that the sector is still expanding strongly in December despite a loss of growth momentum. There were softer, albeit sharp, increases in factory orders and output, while business confidence towards the year-ahead outlook strengthened.
Manufacturing production saw another sharp increase in December, driven by new business gains, favourable market conditions, and participation in fairs and expositions. Despite a softening in the rate of expansion, the sector remained above its long-run average.
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