India’s Manufacturing Activity Expands In February, Confidence Declines
A rebound in export demand and accelerated output growth helped India's manufacturing activity expand for the second consecutive month in February, after it contracted in December due to demonetisation.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) – compiled by Nikkei and research firm Markit – rose to 50.7 in February from 50.4 in January. A reading below 50 indicates a contraction and a reading above it indicates expansion.
The upturn in output reflected improved demand from both the domestic and external markets.Nikkei India Manufacturing PMI Report
Input costs rose at the quickest pace since August 2014 and output charge inflation climbed to a 40-month peak, the report said, adding that “Greater output needs encouraged some firms to step up buying levels, but production requirements were insufficient to generate job creation.”
With an increase in new orders and no new jobs being created, outstanding business rose during the month. “The rate of backlog accumulation was the fastest since last October,” said the report.
Subdued Sentiment
While the year-ahead outlook for output remained positive, the confidence among Indian manufacturers fell well below its five-year historical average.
...with growth rates well below-par, thesector still has many areas to develop before it canfire on all cylinders. Businesses don't yet seemconvinced as to the sustainability of the rebound ashighlighted by cuts to payroll numbers anddestocking initiatives. In fact, confidence towardsthe year-ahead outlook for production dipped sinceJanuary to the second-lowest since the end of 2015.Pollyanna De Lima, Economist, IHSMarkit
Look Out For Services PMI
With the manufacturing sector showing signs of growth with some red flags, all eyes will now be on the services PMI, which contracted for the third straight month in January. The Nikkei India Services PMI Index was at 48.7 last month.
Also Read: As GDP Growth Outstrips Forecasts, Economists Scramble To Explain
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
