India’s factory output in February increased at its slowest rate in five months, according to a survey published by banking group HSBC.

The survey — compiled by the Markit group — shows that the Purchasing Managers’ Index for India’s manufacturing sector fell to 51.2 in February (from 52.9 in January), its lowest standing since September last year (a figure above 50 indicates growth).

The index reached a two-year high of 54.5 in December. Pollyanna De Lima, an economist at Markit, said: “Manufacturing growth in India lost momentum in February, with output and new orders expanding at softer rates than previously.

“However, low inflation, higher exports and a rise in foreign orders are at a strong and accelerated pace, while the PMI remains in positive territory. There is a strong prospect for a rebound in output and employment in coming months.”