RTTNews | Mar 1, 2021 02:17AM EST

02:17 Monday, March 1, 2021 (RTTNews.com) - India's manufacturing sector grew at a softer pace in February, survey results from IHS Markit showed on Monday.

The headline IHS Markit manufacturing Purchasing Managers' Index, or PMI, fell to 57.5 in February from 57.7 in January.

Any reading above 50.0 indicates expansion in the sector. This was in line with economists' expectation.

New export orders grew at a softer rate in February. Total new orders rose further and input inventories grew at the strongest pace in the survey history.

The overall rate of cost inflation was the highest in thirty-two months. Although factory gate charges rose in February, the rate of inflation was modest and eased from January's thirteen-month high.

The backlogs of work rose at the fastest pace in three months and the number of employed declined further.

Output growth projections remained optimistic for the future, with an improvement in economic conditions and lifting of restrictions as the vaccination program expanded.

Post-production stocks declined sharply in February as firms attempted to deliver purchased goods in a timely manner.

"Once larger parts of the population are immunized against COVID-19 and restrictions start to be lifted, companies expect a gradual improvement in economic conditions which they hope will translate into output growth," Pollyanna De Lima, economics associate director at IHS Markit, said.

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