Key Takeaways
- India’s manufacturing PMI surged to a six-month high of 57.7 in January 2025, driven by strong export orders and domestic demand.
- The employment PMI suggested robust job creation in the manufacturing industry, with the index increasing to its highest level since the series was created.
- Input cost inflation eased for a second month, relieving pressure on manufacturers to raise final output prices.
New Delhi: India’s factory activities picked pace in January 2025 with the manufacturing purchasing managers’ index (PMI) climbing to nearly a six-month high of 57.7 during the month on the back of strong export orders.
India’s manufacturing PMI, compiled by S&P Global, had fallen to a one-year low of 56.4 in December 2024, reflecting weak factory activities during the month.
A PMI print below 50 means contraction, while above it shows expansion in activities.
The rate of expansion in manufacturing activities during January this year was the quickest since last July and outpaced its long-run average.
“Following a moderation in growth during December, Indian goods producers kicked off 2025 on a robust note. With new orders rising at the quickest pace since last July, fuelled by the steepest upturn in exports in nearly 14 years, there was a stronger expansion in output. January data also showed a pick-up in growth of buying levels and record job creation,” the private survey said on Monday.
Cost pressures retreated to their weakest in 11 months during January this year, but selling prices rose solidly amid buoyant demand. Meanwhile, business confidence strengthened.
Pranjul Bhandari, Chief India Economist at HSBC, said, ‘India’s final manufacturing PMI marked a six-month high in January. Domestic and export demand were both strong, supporting new orders growth. The employment PMI suggested robust job creation in the manufacturing industry, as the index increased to its highest level since the series was created.”
Bhandari further said, “Input cost inflation eased for a second month, relieving pressure on manufacturers to raise final output prices.”
The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. It is one of the closely watched high-frequency data by economists, markets, and policymakers.
