India's manufacturing sector expansion slowed slightly in February from a month ago, although the pace of growth remained healthy as new orders touched a 10-month high, a business survey showed on Thursday.
The HSBC manufacturing Purchasing Managers' Index ( PMI), compiled by Markit, eased to 56.6 in February from 57.5 in January, which was an eight-month high.
The index has held above the 50 mark that separates growth from contraction for almost three years, although the outlook painted by official data is not as rosy.
Strong growth in the new orders sub-index, which rose to 62.8 in February, and factory output drove the expansion in the sector.
However, employment contracted for the first time in three months and export orders grew at their slowest pace since November, the survey showed.
'Activity in the manufacturing sector continued to expand in February, although at a slightly slower pace. Output growth eased and employment fell, but domestic orders grew at a faster clip,' said Leif Eskesen, economist at HSBC.
Price pressures also rose, with the sub-index for output prices, or the cost of finished products, hitting an 11-month high, and the survey suggests inflation could tick up.
A fall in the headline inflation, as measured by the wholesale price index, to 6.55% in January, its lowest level in more than two years, had raised expectations the Reserve Bank of India could start easing policy.
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The HSBC manufacturing Purchasing Managers' Index ( PMI), compiled by Markit, eased to 56.6 in February from 57.5 in January, which was an eight-month high.
The index has held above the 50 mark that separates growth from contraction for almost three years, although the outlook painted by official data is not as rosy.
Strong growth in the new orders sub-index, which rose to 62.8 in February, and factory output drove the expansion in the sector.
However, employment contracted for the first time in three months and export orders grew at their slowest pace since November, the survey showed.
'Activity in the manufacturing sector continued to expand in February, although at a slightly slower pace. Output growth eased and employment fell, but domestic orders grew at a faster clip,' said Leif Eskesen, economist at HSBC.
Price pressures also rose, with the sub-index for output prices, or the cost of finished products, hitting an 11-month high, and the survey suggests inflation could tick up.
A fall in the headline inflation, as measured by the wholesale price index, to 6.55% in January, its lowest level in more than two years, had raised expectations the Reserve Bank of India could start easing policy.
....more info