Informist, Monday, Feb. 3, 2025

--India Jan manufacturing PMI 57.7 vs 56.4 in Dec

--India Jan manufacturing PMI of 57.7 highest in 6 months

NEW DELHI – India's manufacturing sector activity started the new year on a positive note, with the HSBC India Manufacturing Purchasing Managers' Index rising to a six-month high of 57.7 in January from a 12-month low of 56.4 in December, S&P Global said Monday.

Despite rising to a six-month-high, the final print for January is below the provisional estimate, with the flash PMI released on Jan. 24 having pegged the month's manufacturing index at 58.0. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction.

"Following a moderation in growth during December, Indian goods producers kicked off 2025 on a robust note," S&P Global said. "With new orders rising at the quickest pace since last July, fuelled by the steepest upturn in exports in nearly 14 years, there was a stronger expansion in output."

Output increased at a quicker pace in January compared to last month, thanks to better domestic demand and strong demand from across the globe, S&P Global said.

Robust sales led to companies hiring additional workers last month. The rate of increase in employment was the highest in nearly 20 years of data collection, S&P Global said.

Cost pressures increased in January due to higher costs of freight, labour, and materials. The rate of input cost inflation, however, was the lowest in 11 months. Selling prices rose amid high demand last month, but the pace of increase was the slowest in four months, S&P Global said.

"Companies turned more optimistic about output prospects, with nearly 32% of firms forecasting growth and just 1% expecting a reduction," S&P Global said. "According to panel members, buoyant underlying demand, better customer relations, favourable economic conditions and marketing efforts -- all bode well for growth prospects."

The upbeat manufacturing sector PMI print in January would provide comfort to policymakers, who are looking at ways to revive moderating economic growth. The Union Budget on Saturday announced tax breaks primarily for the middle class in a bid to boost consumption and investments.

Later this week, the Reserve Bank of India's Monetary Policy Committee is expected to lower interest rates with an aim to support the economic growth revival. End

Reported by Shubham Rana

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.