New Delhi, Feb 20 (NationPress) The PMI figures for February indicated a significant boost in output growth, with the HSBC Flash India PMI increasing from 58.4 in January to 59.3 this month — marking the most robust expansion observed in three months, according to data compiled by S&P Global released on Friday.

This increase was primarily driven by a faster rise in factory production, with services activity growth remaining largely consistent with the trends seen at the beginning of the 2026 calendar year.

“The manufacturing sector gained momentum in February, bolstered by strong output growth and an uptick in new domestic orders,” stated Pranjul Bhandari, Chief India Economist at HSBC.

At the composite level, the expansion recorded in February was the most substantial since last September.

“Despite rising inflationary pressures, both manufacturers and service providers expressed optimism regarding future growth,” added Bhandari.

Private sector firms in India noted a faster increase in total new orders and international sales during February, prompting them to hire more staff and increase production levels.

The report also highlighted that businesses grew more optimistic about growth prospects, although these improvements coincided with intensified inflationary pressures, with both input costs and selling prices rising at quicker rates.

Additionally, similar to the trends observed in output, total new orders surged at the fastest pace since last November.

Survey participants attributed this growth to strong demand, local tourism, effective marketing efforts, and an increase in client inquiries. Goods producers reported a more significant rise in total sales compared to services firms, with the former experiencing the quickest growth in four months, while the latter saw a retreat to a 13-month low.

However, competitive pressures and the availability of cheaper alternatives for services dampened the overall upturn, as suggested by qualitative data.

“One area where the service sector excelled was in exports, with international orders climbing at a pace that was the quickest since August 2025,” according to the data.

Alongside hiring more staff, goods producers also increased their purchasing volumes, with input buying growth reaching a four-month high in February.

Nevertheless, data indicated that suppliers continued to deliver materials punctually, with a two-year streak of improved vendor performance aiding firms' efforts to bolster their inventories of raw materials and semi-finished goods.