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Charts & Analysis

February PMI at 57.6, Below Jan But High Enough

In what should be good news, the HSBC Markit Purchasing Manager’s Index (PMI) is at 57.6 in February, down from Jan’s 59.6 but still very strong. Above 50 in expansion and below it is contraction, so 57 is a strong number. And

Input prices faced by companies in India rose at the weakest rate in four months in February. Nonetheless, the rate of cost inflation remained marked and above the long-run trend.

Service companies in India were optimistic in February that activity would rise over the next year. Higher new work intakes, supported by marketing initiatives and the good quality of services provided, alongside ongoing improvements in market conditions are expected to boost activity. Confidence was at an eight-month high in the latest survey period.

The Manufacturing part of the PMI (the other is Services) was at 56.6.

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The deal-breakers to growth are seen as oil prices and the RBI not easing due to high inflation.