BENGALURU- India’s manufacturing activity grew at its weakest pace in over a year last month due to cooling demand, but employment generation rose at a healthy pace and inflation eased, a private survey showed on Monday.
The softer manufacturing data suggests the growth rebound in Asia’s third-largest economy may be short-lived after the government said gross domestic product expanded 6.2 percent last quarter from 5.6 percent in the previous one.
Goods production, which accounts for less than a fifth of overall output grew 3.5 percent in October-December, only a slight rise from 2.2 percent in the previous quarter.
The HSBC final India Manufacturing Purchasing Managers’ Index compiled by S&P Global, fell to 56.3 in February – its lowest since December 2023 – from 57.7 in January. A preliminary estimate was much higher at 57.1.
However, the index has been in expansionary territory – above 50 – for 44 consecutive months, the longest streak since July 2013, which marked 52 months of continuous growth.
Domestic demand waned slightly with the new orders and output sub-indexes falling to 14-month lows although factories reported an improvement in technology investment and commissioning new projects.
International demand softened last month from an over 14-year high in January.
