Economy Reports News Details

India Manufacturing Sector Continues Strong Growth With 56.0 PMI In November

(01-Dec-23   10:53)

The Indian manufacturing industry continued to perform well in November. After slowing in October, growth of output gathered pace as strengthening client demand and more favorable input supply boosted production volumes. Inflationary pressures retreated, with purchase costs rising at the weakest pace since the current sequence of increases began in August 2020. Charges rose modestly, as the vast majority of firms opted to leave their fees unchanged since October.

Picking up from October's eight-month low of 55.5 to 56.0 in November, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers? Index (PMI) indicated a stronger improvement in operating conditions. The reading was below the average for the second fiscal quarter (57.9), but outpaced the series trend.

A key feature of the latest results was a substantial easing of price pressures. Rising costs translated into increased selling prices, albeit one that was the weakest in seven months. November data showed another substantial increase in overall levels of new work received by Indian goods producers. The trend for new export business showed signs of resilience, despite weakening in November.

With total new sales rising, demand conditions remaining positive and input supply relatively improving, Indian manufacturers scaled up production volumes. Manufacturing employment in India increased for the eighth successive month heading towards the end of the 2023 calendar year.

Purchasing activity and stocks of inputs rose during November, in many cases owing to buoyant demand conditions. The outlook for India's manufacturing sector remained favorable in November, with firms seeing opportunities in the form of demand strength, marketing initiatives and new clients making enquiries about a wide range of products.

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