India’s manufacturing sector growth revived after an eight-month low driven by faster increases in total new orders and international sales.
Representation image (Photo: iStock)
India’s manufacturing sector growth revived after an eight-month low driven by faster increases in total new orders and international sales.
The HSBC final India manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 57.5 in October from an eight – month low of 56.5 in September.
A figure above 50 in the index denotes expansion in activity and below signifies contraction.
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The survey further noted that new export orders also exhibited stronger growth, following the weakest uptick in a year-and-a-half during September, as panel members reported gains in new contracts from Asia, Europe, Latin America and the US.
The survey said the companies noted a quicker increase in order book volumes that was stronger than the average seen in nearly 20 years of data collection. Anecdotal evidence suggested that the introduction of new products and successful marketing initiatives helped enhance sales performances.
Production volumes were ramped up to a greater degree in October, fuelled by faster increases in the consumer and investment goods categories. When explaining the latest upturn in output, companies remarked on demand buoyancy, positive sales pipelines and favourable market conditions, it added.
On the employment front, the survey noted that not only did manufacturers hire extra staff at the start of the third financial quarter, but also to a greater degree than in September.
Further, on the inflation front, data signalled stronger inflationary pressures across India’s manufacturing sector with input price inflation quickening to a three-month high, though remaining below its long-run trend.
October manufacturing PMI came up slightly higher than the flash estimate of 57.4 for the month and it marks output rising for the 40th consecutive month in the sector since July 2021.
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