India's manufacturing sector growth at 8-month high in March, PMI data released
Purchasing Managers Index: The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) reached 58.1 in March. This figure was 56.3 in February. In February, India's manufacturing PMI fell to a 14-month low amid slow growth in new orders and production. Let's know what the March PMI figures say.
India's growth pace in the manufacturing industry picked up to an eight-month high in March. Factory orders and production picked up as demand within the market improved. This was supplied by the monthly survey of PMI on Wednesday.
Seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) was 58.1 in March. It had been 56.3 in February. India's manufacturing PMI fell to a 14-month low in February due to weak growth of orders and production.
In PMI parlance, expansion is indicated by any reading above 50, and contraction by any reading below 50. According to the numbers, Indian manufacturing growth regained the momentum lost earlier during the month of February.
According to the survey, total sales in March saw the highest growth since July 2024. During this period, companies saw positive customer interest, favorable demand conditions, and successful marketing. Firms increased production volumes at the end of the 2024-25 financial year. This led to an eight-month high in manufacturing growth.
Although new export orders continued to grow strongly in March, the pace of growth fell to a three-month low. Panelists cited growth in Asia, Europe, and the Middle East in terms of international sales.
Pranjul Bhandari, Chief India Economist, HSBC, said, "Although international orders have declined slightly, overall demand momentum remains strong. The new orders index reached an eight-month high of 61.5. Strong demand prompted companies to use their inventories, leading to the sharpest decline in finished goods stocks in three years."
Due to rising demand, companies had to use their inventories to meet the growing demand from customers. As a result, the stock of finished goods fell sharply since January 2022.
Survey participants reported that optimistic forecasts for production levels in the next 12 months can be expressed based on favorable demand conditions, improved customer relations, and projects pending approval.
Bhandari said, "Going forward, business expectations remain quite optimistic, with about 30% of survey participants expecting more production in the coming year, while less than 2% expected a decline." The HSBC India Manufacturing PMI is compiled by S&P Global based on responses to a questionnaire sent to purchasing managers in a panel of about 400 manufacturers.
