Data Alert
Pvt sector growth surges Feb as flash services PMI jumps to 61.1
This story was originally published at 11:10 IST on 21 February 2025
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--India Feb flash composite PMI 60.6 vs final Jan figure of 57.7
--India Feb flash manufacturing PMI 57.1 vs final Jan figure of 57.7
--India Feb flash services PMI 61.1 vs final Jan figure of 56.5
NEW DELHI – Growth in India's private sector quickened in February, with the HSBC Flash Services Purchasing Managers' Index surging to an 11-month high of 61.1 from January's 26-month low of 56.5. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below it indicates contraction.
However, the flash manufacturing PMI declined to 57.1 in February from January's six-month high of 57.7, with the output index edging down to 59.5 from 60.1. Consequently, the flash composite PMI rose to 60.6 from 57.7 in January. At 60.6, the composite index is the highest since August.
"Private sector output in India increased at the fastest pace in six months during February, amid a quicker expansion in services activity. The latest HSBC 'flash' PMI data also indicated stronger growth of aggregate sales, which exerted upward pressure on operating capacities and prompted companies to step up hiring," compiler S&P Global said in a statement.
The final PMI numbers for February will be released in the first week of March.
Manufacturing orders continued to rise in February, although at a weaker rate than in January, with S&P Global saying respondents pointed to "competitive pressures" for the same. Service providers, meanwhile, saw the sharpest increase in new orders since August. External demand for goods and services continued to improve, with total new export orders rising the most in seven months in February.
"Rapid restocking around the world continues to lift new export orders. A healthy acceleration in orders and output is keeping firms optimistic about the future," said Pranjul Bhandari, chief India economist at HSBC.
With demand rising, pressure on firms' capacities increased in February, with outstanding business volumes rising further, particularly for service providers. As such, they hired at a stronger pace than manufacturers, resulting in overall job creation climbing to a "new series peak". "Qualitative data showed that survey members hired a combination of permanent and temporary workers on full- and part-time bases. In particular, there were several mentions of trainees being taken on," S&P Global said.
On the cost front, while input prices kept increasing, the rate of increase in February was the least in four months, with pressures higher for service providers. In terms of prices charged, the rate of increase was at a three-month high and above its long-run average. The combination of the two led to improved margins, especially for goods producers, HSBC's Bhandari said. End
Reported by Siddharth Upasani
Edited by Avishek Dutta
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