Mfg PMI improves to 54.9 in Feb after 4-mth low in Jan as Covid curbs ease

Ukraine war-induced commodity price spike could derail mfg rebound in India

India’s manufacturing activity picked up in February as state governments lifted Covid restrictions with waning of the third wave while favourable demand conditions supported an improvement in sentiment which reached the strongest since last October. However, a spike in commodity prices owing to the unfolding Russia-Ukraine war and likely disruption in overseas shipments may put downward pressure on domestic manufacturing activity.

Data released by the IHS Markit showed India’s Manufacturing Purchasing Managers’ Index (PMI) improved to 54.9 in February after dropping to a four month low at 54 in January as the Omicron variant of Covid-19 spread rapidly throughout the