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Informist, Friday, Feb. 20, 2026

 

--India Feb flash manufacturing PMI 57.5 vs 55.4 Jan final 
--India Feb flash services PMI activity index 58.4 vs 58.5 Jan final 
--India Feb flash composite PMI output index 59.3 vs 58.4 Jan final 

 

NEW DELHI – India's private sector activity expanded at the strongest rate in three months in February with quicker increases in total new orders and international sales during the month, S&P Global said Friday. This prompted higher staff recruitment and scaling up of output which, in combination, made businesses more optimistic about growth prospects. The HSBC Flash Composite Purchasing Managers' Index rose to 59.3 in February from 58.4 in January.

 

Activity picked up in the manufacturing sector at a higher clip than the services sector. The flash manufacturing PMI rose to a four-month high of 57.5 in February from the final print of 55.4 in January. The flash services PMI fell to 58.4 in February from 58.5 in January. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"The manufacturing industry strengthened in February, supported by robust growth in output and new domestic orders. That said, growth of new export orders slowed," Pranjul Bhandari, chief India economist at HSBC, said. "Conversely, services saw a notable acceleration in new export business, while its domestic orders moderated. Both manufacturers and service providers were optimistic about the future, despite rising inflationary pressures." 

 

According to the release, goods producers signalled a stronger increase in total sales than services firms, marking the quickest rise in four months, while growth in the services sector retreated to a 13-month low. Dampening the upturn were competitive pressures and the offer of cheaper services elsewhere, qualitative data showed. One area where the service economy outperformed was exports, with international orders rising at a substantial pace – the steepest since August 2025. In contrast, manufacturers recorded the slowest increase in external sales in 16 months.

 

Preliminary PMI data also showed a mild increase in capacity pressures among India's private sector companies. Outstanding business volumes rose for the third straight month in February, marking the quickest pace since July 2025. The rate of accumulation, however, remained slight. 

 

At the composite level, the pace of job creation strengthened to a three-month high in February and goods producers also scaled up purchasing volumes, with input buying growth climbing to a four-month high in February. Still, data suggested that suppliers were comfortably able to deliver materials in a timely manner, with the current sequence of improving vendor performance stretching to two years. This aided firms' efforts to lift stocks of raw materials and semi-finished items, the release said. 

 

In tandem with rising cost pressures, companies in India also lifted their selling prices during February. Moreover, the aggregate rate of inflation accelerated to a six-month high and outpaced its long-run average. Service providers registered a faster increase in output charges than manufacturers, reflecting more intense cost pressures. While the rate of input price inflation faced by Indian factories was the same as that seen in January, services firms saw the steepest rise in two-and-a-half years. 

 

As such, levels of positive sentiment improved among services companies and their manufacturing counterparts. Collectively, firms were at their most optimistic regarding the year-ahead outlook for business activity in exactly one year, according to HSBC. Panellists expect investment and marketing efforts to bear fruit.  End

 

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

 

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