Indias Manufacturing Sector Maintains Strong Growth in October, PMI at 54.7
Indias manufacturing sector shows resilience in October with a PMI of 54.7, driven by strong export orders despite slower growth in production.
New Delhi, November 2 (Daily Kiran) : India’s manufacturing sector continued to exhibit robust growth in October, with the Purchasing Managers’ Index (PMI) registering at 54.7. While this marks a slight decline from September’s 55.1, it remains well above the neutral mark of 50, indicating ongoing expansion in the industry.
The growth in the manufacturing sector was bolstered by a surge in new export orders, which saw the fastest increase in six months. This uptick in demand from international markets contributed positively to production levels, despite a slowdown in the pace of new orders and output growth during the month.
Data compiled by S&P Global indicates that companies persisted in expanding their workforce and stockpiling raw materials. However, the rate of new hiring has slowed. Additionally, businesses expressed a weakened outlook for future operations.
The PMI for October, while slightly lower than the previous month, remains above the long-term average, highlighting sustained demand and business activity within India’s manufacturing landscape. Pranjul Bhandari, chief economist for HSBC India, noted that even with the decrease, the PMI reflects strong expansion within the sector and is still above its long-term average.
Bhandari pointed out that the significant increase in new export orders was a result of robust international demand, leading to a notable rise in production. Manufacturing firms also focused on boosting their inventory levels, marking the fastest increase in stockpiling in eight months. This strategy is largely a response to global uncertainties and potential future shortages of raw materials, ensuring that companies can meet production needs without disruption.
While some raw material and energy costs have risen, the overall pressure on prices for materials used in production and finished goods has eased compared to the previous month.
In October, manufacturing companies encountered favorable opportunities for new business, with strong growth in new orders, albeit at a slower pace than in September, which had seen the most significant increase in seven months. Despite this, the growth in new business remained robust compared to historical averages.
Surveyed companies attributed their business growth to improved demand, new customer orders, and successful marketing campaigns. The influx of orders from foreign markets has provided substantial support to Indian manufacturing firms, contributing to the sustained momentum in production activities.
Indian companies received strong orders from various countries, including Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, the UK, the US, and the UAE, further enhancing their sales and production capabilities.
