: Manufacturing PMI marginally down to 55.3 in Feb #FinanceIndia #StockMarketNEWS Manufacturing PMI marginally down to 55.3 in Feb New Delhi, Mar 1 (KNN) Indias purchasing managers index (PMI) for manufacturing

@StockMarketNEWS Sun 05 Mar, 2023

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Manufacturing PMI marginally down to 55.3 in Feb #FinanceIndia #StockMarketNEWS
Manufacturing PMI marginally down to 55.3 in Feb New Delhi, Mar 1 (KNN) Indias purchasing managers index (PMI) for manufacturing in February declined to 55.3, from 55.4 in January, said a survey by S&P Global on Wednesday.

"Input costs in the manufacturing industry increased further, with firms mentioning higher prices for electronic components, energy, foodstuff, metals and textiles. However, the rate of inflation was still below its long-run average and among the weakest in over two years", the survey noted.

Despite the rising input costs, only a few firms opted to pass cost increases through to clients by lifting their selling prices, while 94 per cent left the price unchanged in order to boost sales.

"The survey showed some reluctance among manufacturers to pass on cost increases to clients, with output charge inflation easing since January", said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

"Domestic market was the main source of new business growth, as new orders from abroad increased only fractionally and the rise in international sales was the weakest in the current 11-month period of expansion", the survey noted.

De Lima said that the growth momentum in Indias manufacturing industry was maintained in February, with new orders and output increasing at similar rates to January, and companies were confident in the resiliency of demand as they continue to add to their inventories by purchasing additional inputs.

"Job creation failed to gain meaningful traction, however, as firms reportedly had sufficient staff to cope with current requirements,” she said.

Indeed, there was only a marginal increase in their backlogs. Suppliers also appeared to have ample capacity to accommodate for rising input demand, shown by a stabilisation in delivery times", she added.

The manufacturing PMI data comes in the wake of the core sector data released Tuesday by the industry department. The Production of eight infrastructure industries expanded 7.8 per cent year-on-year (YoY) in January, its fastest pace in four months, as seven reported positive output growth. (KNN Bureau)