India’s manufacturing activity remains strong in October: Survey | So Good News

Manufacturing activity in India remained strong and price pressures were kept in check in October as new orders and production rose at a slower but stronger pace, according to a monthly survey released on November 1.

The seasonally adjusted Purchasing Managers’ Index (PMI) produced by S&P Global India rose to 55.3 in October from 55.1 in September.

October PMI data pointed to improvement in overall operating conditions for the 16th consecutive month. In PMI parlance; A score above 50 indicates expansion, while a score below 50 indicates contraction.

“Indian manufacturing showed signs of resilience again in October, with factory orders and output strengthening, although growth slowed,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence.

Firms were able to secure additional jobs in October, taking the current rate of growth to 16 months, the survey said. Overall, factory orders showed an upward trend, the lowest since June.

Looking ahead, Indian manufacturers are still confident that production volumes will pick up in October 2023. Estimates of improved sales and marketing efforts are among the reasons cited for the fluctuating forecasts.

“Manufacturers continue to loosen their purse strings as they expect demand to pick up in the coming months.

“Input purchasing has risen dramatically as companies add to their inventory to better align with customer purchasing. Capacities have been further expanded to accommodate increased sales,” Ms Limar said.

In the face of inflation, The cost burden rose at a rate broadly similar to the lowest rate in September 23, and inflation traded at its lowest level since February.

On the employment front, As the volume of outstanding business rose to the largest extent in nearly two years, there were signs of significant capacity pressures among Indian commodity producers. Some companies respond to this by hiring additional workers.

“Manufacturing employment grew at the strongest rate since data collection began in March 2005,” the survey said.

For the first time since the implementation of the monetary policy framework in 2016, the Reserve Bank will report to the government on the failure to keep retail inflation below six per cent for consecutive quarters from January 2022.

The monetary policy framework, which came into effect six years ago, mandates the Reserve Bank of India (RBI) to keep retail inflation at 2% on either side.

“Consumer goods are manufactured, It was the best performing category in October, recording the best performance for total sales and exports. Growth for all of the above areas has been steady in the intermediate and capital goods sub-sectors, although it has slowed since September.” Ms Lima said.

The S&P Global India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers from around 400 manufacturers. Based on contributions to GDP, the panel is divided by detailed sector and company workforce size.