(MENAFN- KNN India)
New Delhi, Feb 3 (KNN) manufacturing activity in India demonstrated robust growth at the start of 2024, with the Purchasing Managers' index (PMI) reaching 57.7 in January, marking its highest level in six months, according to data released by S&P Global.
This notable improvement follows a period of moderate growth in December when the index had declined to a 12-month low of 56.4, though still maintaining levels above its long-run average of 54.1.
The January surge was primarily driven by a significant increase in new orders, which expanded at the fastest rate since July 2023. Particularly noteworthy was the exceptional performance in export orders, which achieved their highest growth rate in nearly 14 years, with manufacturers reporting increased demand from various global markets.
This strong international demand, coupled with robust domestic market conditions, contributed to substantial production volume increases, reaching levels not seen since October 2024.
Employment figures painted an equally impressive picture, with manufacturers implementing the most significant workforce expansion in the survey's two-decade history.
This record-breaking job creation coincided with improved vendor performance and successful inventory management, as suppliers demonstrated enhanced delivery efficiency reaching an eight-month high.
On the economic front, manufacturers experienced some relief as cost pressures reached their lowest point in 11 months. However, strong market demand enabled companies to maintain solid pricing levels for their products.
The positive business environment was further reflected in strengthened business confidence among manufacturers.
HSBC's Chief India Economist, Pranjul Bhandari, highlighted the significance of these developments, noting that both domestic and export demand contributed to the robust growth in new orders.
Bhandari particularly emphasised the unprecedented levels of job creation in the manufacturing sector, as indicated by the employment index reaching its highest point since the series began.
Despite these positive indicators, some challenges emerged in inventory management. January saw the second consecutive month of declining finished goods inventories, with the rate of depletion reaching its most significant level in nearly three years, primarily due to demand outpacing production capabilities.
Nevertheless, manufacturers responded proactively by accelerating their input purchases to the highest rate in three months, while successfully building up input stock inventories to levels not seen since October 2024.
(KNN Bureau)
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