India’s Manufacturing Purchasing Managers’ Index (PMI) reached a four-month high of 56.5 in January, rebounding from an 18-month low in December (54.9), fueled by robust growth in new orders and production, according to HSBC Flash India PMI data. The sector has maintained an index above 50 since June 2021, indicating expansion. Strong domestic demand outpaced exports, driving the surge, with marketing efforts and demand buoyancy cited as contributing factors. Despite marginal employment changes, firms increased raw material purchases due to optimism and strong demand. Input cost inflation and prices charged experienced slight increases, with firms passing some costs to clients. Inflation in India remained near the upper limit of the Reserve Bank of India’s target range in November and December.
India’s Manufacturing PMI Hits Four-Month High at 56.5 in January
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