Agency, New Delhi.
Published by: Dev Kashyap
Updated Thu, 03 Mar 2022 06:51 AM IST
Summary
This PMI figure shows strong improvement in the sector. Manufacturing PMI stood at 54.0 in January. A PMI above 50 indicates expansion and a figure below it indicates contraction. IHS Markit Economist Shreya Patel said sustained growth in sales fueled the manufacturing sector’s output pick-up in February.
Activity in the country’s manufacturing sector picked up in February due to a rise in new orders and a spurt in production. These activities have been supported by favorable demand conditions. Due to this, the Manufacturing Purchasing Managers’ Index (PMI) of AHS Market released on Wednesday rose to 54.9 in February.
This PMI figure shows strong improvement in the sector. Manufacturing PMI stood at 54.0 in January. A PMI above 50 indicates expansion and a figure below it indicates contraction. IHS Markit Economist Shreya Patel said sustained growth in sales fueled the manufacturing sector’s output pick-up in February.
The manufacturing data shows an improvement in the operating conditions of the companies in February, 2022. Production and number of new orders have increased as procurement activities continue. However, there are some key concerns that remain a threat to growth. Cost pressures remain high due to raw material shortages, while delivery times have once again increased. The biggest challenge for the manufacturers is the marginal increase in selling prices. The pressure on Indian manufacturers has increased due to past outstanding orders. This has resulted in a reduction in employment despite a pick-up in demand.
Expansion
Activity in the country’s manufacturing sector picked up in February due to a rise in new orders and a spurt in production. These activities have been supported by favorable demand conditions. Due to this, the Manufacturing Purchasing Managers’ Index (PMI) of AHS Market released on Wednesday rose to 54.9 in February.
This PMI figure shows strong improvement in the sector. Manufacturing PMI stood at 54.0 in January. A PMI above 50 indicates expansion and a figure below it indicates contraction. IHS Markit Economist Shreya Patel said sustained growth in sales fueled the manufacturing sector’s output pick-up in February.
The manufacturing data shows an improvement in the operating conditions of the companies in February, 2022. Production and number of new orders have increased as procurement activities continue. However, there are some key concerns that remain a threat to growth. Cost pressures remain high due to raw material shortages, while delivery times have once again increased. The biggest challenge for the manufacturers is the marginal increase in selling prices. The pressure on Indian manufacturers has increased due to past outstanding orders. This has resulted in a reduction in employment despite a pick-up in demand.