Mar. 1 – India’s manufacturing sector expanded for the third straight month in February, reaching a 20-month high, according to HSBC Markit Purchasing Managers’ Index (PMI).
HSBC’s India PMI climbed to 58.5 in February, up from 57.6 the previous month, due in part to expanding output and new business.
Based on a survey of 500 companies, a PMI reading above 50 indicates expansion, while one below 50 suggests contraction.
“Having wobbled slightly towards the end of last year, India’s manufacturing PMI has now shown three consecutive improvements, hitting levels last seen in mid-2008,” said Robert Prior-Wandesforde, Senior Asian Economist at HSBC.
“At 58.5, the headline index is consistent with ongoing double-digit gains in industrial production which, in turn, is likely to mean that spare capacity is being eaten into rapidly.”
In comparison, HSBC’s China PMI dropped from 57.4 in January to 55.8 last month, however the timing of the Chinese New Year holidays complicate the interpretation of data.
