Manufacturing growth slowed down marginally in February from a month ago, but the pace remained healthy as new orders touched a 10-month high, according to a survey. HSBC's Purchasing Managers’ Index (PMI), compiled by Markit, was estimated at 56.6 in February, compared to 57.5 in January, which was an eight-month high. A score above 50 indicates that manufacturing activity in the economy is expanding. The reading is in line with recent trends, where growth has moderated, after a slight pick up. PMI is based on a survey of managers. Data released on Thursday showed that manufacturers reported a substantial increase in new business during the month. Panelists commented that improved demand had boosted the expansion in overall new orders. A rise in new exportbusiness was recorded for the fourth successive month, although this was down against January. The survey showed that output also increased sharply during February in line with the strong rise in new business. However, the rate of expansion moderated. If the reading is correct, there may be some concerns for India policymakers in the months ahead as there was a decline in employment in the Indian manufacturing sector during February, which added to the pressure on operating capacity. Managers said that a lack of qualified workers to fill vacant positions had led to the fall in staffing levels.
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