India’s manufacturing sector activity lost some growth momentum in October compared to September as output and new orders increased only marginally, according to HSBC India Manufacturing Purchasing Managers’ Index (PMI) data released by S&P Global on Monday.
Firms reported gains from Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, the UK, US and the UAE. New business increased in October reflecting sustained demand for manufacturing goods. Growth softened marginally from September, which recorded a seven-month high, though it remained strong by historical standards. Firms cited favourable demand trends, new client wins and successful marketing campaigns for the growth. International orders increased at the fastest rate in six months and contributed to the index’s expansion. Across all three broad areas of manufacturing tracked by the PMI survey, cost pressures eased. overall inflation was the lowest since February Although firms observed higher prices for energy and certain materials. Outstanding business volumes against the orders received increased, but the pace of accumulation was very slow.
The headline figure, the manufacturing PMI — tracks factory conditions based on new orders, output, employment, suppliers’ delivery time, and stock of purchases — stood at 54.7 in October, compared to 55.1 in September. To be sure, manufacturing activity remained in expansion, as the index stood above 50. As a result, firms raised selling prices only slightly to protect margins.
Around 18% of firms expect higher output in the next twelve months, while others remained neutral. Business confidence weakened in October compared to September and remained below its long-run average.
