India manufacturing sector growth slows in October
The HSBC India Manufacturing Purchasing Managers' Index fell to 54.7 in October from 55.1 in September.
India's manufacturing sector activity expanded at a slower pace in October as increases in output and new orders weakened, according to reports by The Hindu, Deccan Herald and Business Standard on Monday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) dropped to 54.7 in October from 55.1 in September. Despite the dip, the index remained above the neutral mark of 50.0, which indicates expansion.
Pranjul Bhandari, Chief India Economist at HSBC, said the index remained in expansionary territory and stayed above its long-run average. Bhandari noted that international demand drove export order growth to its fastest pace in six months, which helped bolster output.
The survey indicated that companies saw gains from various locations, including the US, UK, Canada, UAE, Saudi Arabia, Oman, Bangladesh, Indonesia, Nepal, and Sri Lanka. To prepare for potential shortages, producers increased input inventories to their highest level in eight months.
While factory employment grew for the second month in a row due to higher workloads, the speed of hiring slowed. Additionally, business confidence declined from September and stayed below the long-run average, with only about 18 per cent of manufacturers expecting higher output next year.
Cost pressures also lessened across the industry. Although some energy and material prices rose, the overall rate of input cost inflation reached its lowest point since February.