Manufacturing Purchasing Manager’s Indices (PMI)

Indian private sector manufacturing activity soared to a six-month high in January, ending a one-year low in December 2024. The record-breaking export performance and strong factory orders were attributed to the rise, as said by the HSBC India Manufacturing PMI.

Key Highlights

The PMI indicates recovery

• HSBC India Manufacturing PMI rose from 56.4 in December to 57.7 in January, breaking a two-month decline.
• This indicates strong expansion in manufacturing activity.

Exports Reach a 14-Year High

• Export growth was the highest since 2011, boosting overall manufacturing output.

Easing Cost Pressures & Price Trends

• Input cost pressures eased to an 11-month low, which eased the strain on manufacturers.
• Businesses increased prices, but at the slowest rate in four months.

Businesses Feel Hopeful About Future

• 32% of firms anticipate growth, while only 1% expect contraction in output.
• Companies are more optimistic about future expansion than they were in the previous months.

Implications & Outlook

• Improved Manufacturing Growth
  • The PMI increase indicates a healthy rebound in India’s manufacturing sector.
• Boost to Job Creation
  • Higher hiring is indicative of better employment trends in the sector.
• Inflation Taming
  • Lower increases in prices and easier input prices might help to keep inflation within the control level.
• Growth Likely to Be Maintained in Q4 FY25
  • Growth will be sustained, as orders, exports, and business confidence are growing.

HSBC Flash Purchasing Manager’s Indices