India's Manufacturing Activity Shows Recovery In October: PMI Data

(MENAFN- KNN India) New Delhi, Nov 4 (KNN)
India's manufacturing sector demonstrated renewed vigour in October, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) rising to 57.5 from September's eight-month low of 56.5, ending a three-month period of declining activity.

The survey, conducted by S&P Global Market Intelligence across approximately 400 factories, revealed a significant upturn in production volumes, particularly in consumer and investment goods categories.

This growth was attributed to robust demand, positive sales trajectories, and favourable market conditions.

Export performance showed marked improvement, rebounding from September's 18-month low, with manufacturers securing new contracts from diverse markets including Asia, Europe, Latin America, and the United States.

The expansion in international sales contributed significantly to the overall growth in new orders.

Despite the positive momentum, manufacturers faced heightened cost pressures, with input expenses rising at the fastest pace in three months.

Companies reported increased expenses across freight, labor, and materials, prompting them to implement price adjustments above the typical trend to maintain margins.

Employment figures showed modest growth, with 10 per cent of surveyed companies expanding their workforce while only 1 per cent reduced staff numbers.

Notable was the substantial increase in pre-production inventories, with input stock accumulation reaching one of the highest levels recorded in the survey's two-decade history.

Business sentiment among manufacturers showed considerable improvement from September's low point.

The outlook appeared particularly optimistic, with 23 per cent of participants anticipating growth in output over the next year, while others expected stable conditions.

HSBC's Chief India Economist, Pranjul Bhandari, attributed the PMI improvement to overall better operating conditions in the economy.

"To start the third fiscal quarter, business confidence is very high due to expectations of continued strong consumer demand, new product releases, and sales pending approval," she explained, while also noting ongoing concerns about inflationary pressures affecting material, labour, and transportation costs.

(KNN Bureau)

MENAFN04112024000155011030ID1108847195