New Delhi: India’s Manufacturing Purchasing Managers’ Index (PMI) touched a 16-year high in March. The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global stood at 59.1 in March. This surge is due to strong increases in new orders, output and input stocks, as well as renewed job creation.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) touched a 5-month high in February. It was at 56.9 in February. It was 56.5 in January, recovering from an 18-month low of 54.9 in December. However, the latest reading is a tad lower than the 59.2 estimated by HSBC for March in its Flash India Manufacturing PMI last month.
In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.
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‘India’s March manufacturing PMI rose to its highest level since 2008. Manufacturing companies expanded hiring in response to strong production and new orders. On the back of strong demand and a slight tightening in capacity, input cost inflation picked up in March,’ said Ines Lam, an economist at HSBC.
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.
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