PMI: Mfg fireworks missing in Q4

Low energy Pace of business activity in India's manufacturing sector hit a multi-month low in February, hurting confidence.

- Harsha Jethmalani

To meet the National Statistical Office's (NSO) ambitious goal of 6.5% growth in India's FY25 gross domestic product (GDP), the economy needs to pick up a significant pace in the March quarter (Q4FY25). But the crucial manufacturing sector is losing impetus, shows the latest Purchasing Managers' Index (PMI) data—a private survey.

The seasonally adjusted HSBC India Manufacturing PMI slipped to a 14-month low of 56.3 in February from 57.7 in January. The fall was driven by softer new orders and production growth. A reading above 50 indicates expansion.

While the headline PMI stays in the expansion zone, it is hardly a comfort as cost pressures still linger. Indian manufacturers faced another rise in input costs, with frequent reports of greater bamboo, leather, marketing, rubber and telecom prices, said the PMI survey report.