India's manufacturing PMI in February grows but more jobs lost

Manufacturing in India continued to grow in the month of February as PMI manufacturing index stood at 50.7, up from 50.4. 

Nikkei, in a statement said, "February data indicated that Indian manufacturing production continued to increase, as a rebound in export demand contributed to a stronger expansion of total new orders."

It, however, said, "Simultaneously, manufacturing employment declined, though the rate of job losses was marginal overall."

Indeed, the vast majority of survey participants signalled unchanged payroll numbers. Evidence provided by panellists indicated that current staffing levels were sufficient to cope with existing production requirements, Nikkei said. 

It said, "At 50.7 in February, up from 50.4, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index – a composite indicator designed to provide a single-figure snapshot of the performance of the manufacturing economy – was above the neutral 50.0 value for the second month running and indicated that the health of the sector improved to a greater extent than in January."

This is the second consecutive month of higher growth after the sector contracted in the month of December following note ban. 

"The upturn in output reflected improved demand from both the domestic and external markets. The total volume of incoming new work increased for the second month in a row, whereas new export orders expanded for the first time since November 2016. Rates of growth for both production and order books picked up since January, but remained marginal," the statement further read.