India’s factory activity expanded for the seventh straight month in February, driven by strong demand and increased output, with input-cost inflation also reaching a 32-month high, according to a private sector survey.
However, the Nikkei Manufacturing Purchasing Managers’ Index compiled by IHS Markets declined slightly to 57.5 in February from 57.7 in February, well above the 50-level separate growth from contraction.
New orders
The sub-index showed slower production and faster growth in new orders than in January last month, indicating strong demand.
“Indian goods producers reported a healthy influx of new orders in February, a situation that reached another jump in production and purchase volumes,” noted Polina Delaima, associate director of economics at IHS Market.
India’s economy returned to growth after two years of growth and expanded 0.4% in the October-December quarter over a year, government data showed on Friday, a Reuters poll expected to grow at less than 0.5% is.
In February, firms again quit the job, at a modest pace, repeating coronoviruses following government-imposed restrictions on workplaces.
Nevertheless, procurement of raw materials grew fastest in nearly a decade as companies protected against shortages to meet higher production needs.
Strong demand for raw materials and semi-finished goods, coupled with supply chain disruptions due to coronovirus restrictions, pushed up cost inflation to its highest in 2018.
High inflation was a concern for the Reserve Bank of India, but it has recently relaxed.
Upbeat Miz grew steadily for nearly a decade, focusing on reborntier input stocks to meet the companies’ demand growth. February’s pre-production inventions had the fastest monthly growth in the history of the survey.
Firms exceeded some of the cost burden on consumers by lowering their prices, but this pace was slower than in January, much weaker than the increase in input costs.
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