Manufacturing Growth Slows In October As Output, New Orders Rise At Slower Pace

Manufacturing Growth Slows In October As Output, New Orders Rise At Slower Pace (File Photo)

India's manufacturing sector activity growth eased in October as output and new orders rose at softer rates, while moderate cost pressures provided support and a buffer against a sharper decline, the monthly survey reflected on Monday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 54.7 in October from 55.1 in September.

A sustained improvement in demand was reflected in a further sharp rise in new business. Growth eased only marginally from September's seven-month high and remained strong by historical standards, the survey said. India's manufacturing sector kept up a strong expansion in October even though output and new orders increased at a milder pace. Firms continued to add jobs and build inventories, although hiring was subdued and business confidence weakened.

"India's manufacturing PMI softened to 54.7 in October from 55.1 in the previous month, but remained firmly in expansionary territory and above its long-run average," said Pranjul Bhandari, Chief India Economist at HSBC. Bhandari further said that "strong international demand pushed growth of new export orders to a six-month high, supporting a robust rise in output. Producers also increased input inventories…

Original source: https://www.timesnownews.com/business-economy