India manufacturing PMI: Manufacturing PMI growth slowest in 4 months, signs of stable growth in February

India's manufacturing sector expanded at the slowest pace in four months in February. The S&P Global India Manufacturing Purchasing Managers' Index stood at 55.3, marginally better than 55.4 in January. This shows that the manufacturing sector is improving. India's manufacturing industry maintained strong growth in production and new orders in the last fiscal quarter, although international sales contracted significantly. Companies continued to ramp up input purchases, while the number of cowries partially expanded as operating cost pressures eased. Meanwhile, input cost inflation shot up to a four-month high.

The data showed that the domestic market was the main source of business growth for companies, as new orders from overseas grew only partially. International sales growth was the weakest in the current 11-month period. Pollyanna de Lima, associate director of economics at S&P Global Market Intelligence, said companies were confident of the elasticity of demand and continued to experiment with expanding businesses by adding additional inputs.

The pace of growth in India's manufacturing sector continued in February with new orders as well as production rising at the same pace as in January. February PMI data point to improving overall operating conditions for the 20th consecutive month. In the language of PMI, above 50 means expansion, while a score below 50 indicates contraction. Input cost inflation rose every month after falling to a 26-month low in November.