India's Factory Activity Growth Dips to 14-Month Low in Feb Due to Cooling Demand
India's manufacturing activity grew at its weakest pace in over a year last month due to cooling demand, but employment generation rose at a healthy pace and inflation eased. Goods production, which accounts for less than a fifth of overall output, grew 3.5% in October-December, only a slight rise from 2.2% in the previous quarter. The HSBC final India Manufacturing Purchasing Managers' Index (INPMI) fell to 56.3 in February - its lowest since December 2023.
- This unexpected downturn highlights how quickly economic trends can shift in Asia's third-largest economy, underscoring the importance of policy decisions and external factors in influencing domestic growth.
- How will India's central bank, facing rising inflation concerns, navigate the delicate balance between monetary policy support and maintaining economic stability amidst a cooling manufacturing sector?