What does the PMI Manufacturing moving up in February really indicate?

India's Manufacturing purchase managers index (PMI), which is published by the HIS Markit each month at the start, showed positive momentum. The PMI manufacturing has grown to 54.9 levels in Feb-22 from 54 levels in Jan-22. Typically, the PMI level of above 50 indicates expansion and below 50 indicates contraction in the manufacturing. PMI rising from 54 levels to 54 levels shows manufacturing expanding at a quicker pace.

While manufacturing activity expanded in Feb-22, new orders also grew at an accelerated rate. PMI Manufacturing covers output, inventories, stock purchases and labour hiring. The Feb-22 PMI points to improvement in overall operating conditions for the eighth month in succession. The PMI showed some positive triggers like higher output, new work intakes, input buying and higher inventory accumulation. Labour markets continued to be tight.