Manufacturing PMI climbs to four-month high in Feb, rises to 56.9

However, the latest figure was significantly lower than the Flash India Manufacturing PMI of 57.5, released last month

India’s private sector manufacturing activity growth surged to a four-month high in February even as exports plummeted, according to data compiled by S&P Global on Monday.

 

HSBC’s India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, which measures monthly change in manufacturing output, rose to 56.9 in February. This is the highest since October last year, and up from 55.4 in January.

 

However, the latest figure — a weighted average of new orders, output, employment, suppliers’ delivery times and stocks of purchases indices — was significantly lower than the Flash India Manufacturing PMI of 57.5, released last month.

 

The reading remained above 50, which denotes expansion in activity, while below that signifies contraction. The headline figure has been in the expansion zone for the 52nd month running.

 

“India’s final manufacturing PMI reflected an acceleration in manufacturing activity in February. Output expanded at a faster rate for a second month, supported by stronger domestic orders,” Pranjul Bhandari, Chief India Economist at HSBC, said.

 

Output by manufacturing firms also grew at the fastest pace in four months as efficiency improvements, healthy underlying demand, rising intakes of new work and tech investment collectively boosted production volumes, said the survey. 

 

However, new export orders slowed significantly with February seeing the slowest growth in 17 months. 

 

“Growth in new export orders continued its slowing trend that began in mid-2025, somewhat restricting employment creation in the manufacturing sector,” Bhandari added.

 

Factory employment, though expanding mildly, grew at the quickest pace in four months. 

 

“One factor that supported additional hiring was a further increase in outstanding business volumes at manufacturers in India. Although marginal, the rate of backlog accumulation strengthened to a seven-month high,” the survey said. 

 

While the rate of inflation for manufacturing inputs remained moderate and equal to January’s, companies sought to protect their margins from cost increases and lifted selling prices once again. 

 

“Cost pressures remained benign, rising at a moderate rate that matched the one seen in January. Output charge inflation ticked higher, however, and outpaced its long-run average,” the survey added.