PMI Mfg At 8-Mth High During March

Although international orders slightly slowed, overall demand momentum remained robust, and the new orders index recorded an eight-month high of 61.5. Strong demand prompted firms to tap into their inventories, causing the fastest drop in finished goods stocks in over three years - Pranjul Bhandari, Chief India Economist, HSBC

New Delhi: India’s manufacturing sector growth rose to an eight-month high in March, driven by quicker increases in factory orders and production amid buoyant demand conditions, a monthly survey said on Wednesday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) was at 58.1 in March, up from 56.3 in February, indicating a substantial improvement in the health of the sector that was above its long-run average. In February, India’s manufacturing PMI fell to a 14-month low amid softer increase in new orders and production. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. Manufacturing sector growth in India recovered the ground lost in February, largely driven by a stronger contribution from its largest sub-component: the New Orders Index. “March saw total sales expand to the greatest extent since July 2024, with companies remarking on positive customer interest, favourable demand conditions and successful marketing initiatives,” the survey noted. Accordingly, firms scaled up production volumes at the end of the 2024/25 fiscal year.