India’s composite PMI hit 8-month high in March

Mumbai:  The HSBC Flash India composite Purchasing Managers’ Index (PMI) rose to an eight-month high of 61.3 in March. It was at  60.6 in February.

‘Led by the strongest manufacturing output in nearly three-and-a-half years, the composite output index rose quickly. New orders rose at a faster pace than in the previous month, and within that both domestic and export orders showed improved vigour. According to survey participants, efficiency gains and robust consumer appetite, alongside investment in technology and favourable market conditions, spurred sales,’ said Pranjul Bhandari, Chief India Economist at HSBC.

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The Flash India composite PMI is a seasonally adjusted index that measures the month-on-month change in the combined output of India’s manufacturing and service sectors. Flash data are calculated from 80-90% of total responses of surveyed firms. It  is  released during the first week of the month. The index has been compiled by questionnaires sent to survey panels of around 400 manufacturers and 400 service firms.

Meanwhile, India’s Manufacturing Purchasing Managers’ Index (PMI) touched a 5-month high in February. The  HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global stood at 56.9 in February. It was at 56.5 in January.

In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction. The PMI is a weighted average of the five indices, namely  New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%). The index is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.