new Delhi: The activities of the manufacturing sector of the country have increased during the month of February due to increase in production and number of new orders. These activities have been supported by favorable demand conditions. In the monthly survey released on Wednesday, it is said
The AHS Markets India Manufacturing Purchasing Managers’ Index (PMI) rose to 54.9 points in February. A month ago in January it was at 54.0. This shows strong improvement in the sector. A PMI figure above 50 means the area has expanded while a reading below 50 means it has declined. The survey said that sustained growth in sales fueled the manufacturing sector’s output pick-up in February.
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IHS Markit Economist Shreya Patel said, “The latest PMI data for India’s manufacturing sector shows an improvement in the operating conditions of companies in February 2022. Production and number of new orders have increased as procurement activities continue.”
“However, there are some major concerns that remain a threat to growth. Cost pressures remain high due to raw material shortages, while delivery times have once again increased. However, the biggest challenge for the manufacturers is the marginal increase in selling prices.” At the same time, due to past outstanding orders, there has been increased capacity pressure on Indian manufacturers. Despite this further pick-up in demand, employment has declined. Patel, however, said that with the increase in orders, employment levels will increase by the end of this month and this will continue to put pressure on capacity.