India Manufacturing Growth Strongest In 6 Months

(RTTNews) - India's manufacturing activity expanded at the quickest pace in six months in January, largely on the back of strong export demand, data compiled by S&P Global showed on Monday.

The HSBC final manufacturing Purchasing Managers' Index rose to 57.7 in January from 56.4 in December. The flash reading was 58.0. A score above 50.0 indicates expansion.

New orders grew at the fastest pace in six months, led by higher export demand, which was the best seen in just under 14 years.

In line with greater new orders, goods producers raised production volumes at the fastest pace in three months. Consequently, firms lifted their workforce numbers, with the rate of job creation increasing to its highest level since the series was created.

On the price front, input prices rose amid greater outlays on freight, labour and materials. Nonetheless, the rate of inflation eased to the weakest since February 2024.  Similarly, output charges also rose at the slowest pace in four months.

As shown by the slight increase in outstanding business volumes, capacity pressures among Indian manufacturers remained low in January, the survey said.

Looking ahead, manufacturers expressed confidence about output expectations, linked to buoyant underlying demand, better customer relations, favorable economic conditions, and marketing efforts.