India PMI

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India: Manufacturing PMI eases while services improves

March 4, 2015

The HSBC manufacturing Purchasing Managers’ Index (PMI) fell to 51.2 in February from 52.9 in January. February’s result marked the second consecutive monthly drop and a five-month low. The PMI is now closer to the 50-threshold that separates expansion from contraction in business activity in the manufacturing sector.

According to HSBC, the drop was driven by a deterioration in all five components of the index. Weaker growth was recorded for output and new orders. In addition, employment levels fell in February and backlogs of work rose. HSBC pointed out that, “[m]anufacting growth in India lost momentum in February, with output and new orders expanding at softer rates than those seen in the past four months.”

Meanwhile, the services PMI rose to 53.9 in February from January’s 52.4. The figure marked an eight-month high and indicates that business activity in services continues to expand. According to HSBC, the increase in February stemmed from strong new business growth during the month.

FocusEconomics Consensus Forecast panelists see fixed investment rising 4.3% in FY 2014/2015, which is unchanged from last month’s estimate. For FY 2015/2016, the panel expects fixed investment to increase 6.6%, which is also unchanged.


Author: Angela Bouzanis, Senior Economist

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India PMI February 2015

Note: HSBC India Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: HSBC and Markit.


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