India's Manufacturing PMI Expands In November As Price Pressures Ease
The India Manufacturing Purchasing Managers’ Index picked up to 56 in November from 55.5 in October, according to S&P Global.
India's manufacturing activity saw an uptick in November, after falling to an eight-month low in October. Input cost inflation slips to a 40-month low.
The India Manufacturing Purchasing Managers’ Index picked up to 56 in November from 55.5 in October, according to S&P Global. A print above 50 means expansion, while a reading below 50 indicates contraction.
The reading was below the average for the second fiscal quarter at 57.9 but outpaced the series trend, according to the release. A key feature of the latest results was a substantial easing of price pressures. Although average purchasing costs rose again, the rate of inflation eased to the lowest in the current 40-month sequence of increases and was negligible by historical standards, according to the release.
Rising costs translated into increased selling prices, albeit one that was the weakest in seven months. Manufacturers that hiked their fees, which were fewer than 7% of panellists, mentioned demand strength, greater labour costs and the usage of higher-quality inputs in production processes.
The levels of new work that Indian goods producers received overall increased significantly in November, according to the data. Surveyed companies commonly reported positive demand trends, greater client requirements and favourable market conditions.
New export orders rose for the 20th month in a row and solidly, albeit at the slowest rate since June. On the upside, companies signalled higher intakes of new business from Africa, Asia, Europe and the U.S.
Manufacturing employment in India increased for the eighth successive month, heading towards the end of the 2023 calendar year. New work in the pipeline and a healthy demand environment spurred recruitment, anecdotal evidence showed.
The outlook for India's manufacturing sector remained favourable in November, with firms seeing opportunities in the form of demand strength, marketing initiatives and new clients making inquiries about a wide range of products. That said, the overall level of positive sentiment slipped to a seven-month low amid rising inflation expectations.
