India’s manufacturing sector gains momentum in October after decelerating for three months

India’s manufacturing sector activity, HSBC Purchasing Managers’ Index (PMI), for the month of October came in at 57.5, up from an eight-month low of 56.5 in September. As per S&P Global, the growth was driven by an increase in demand and job creation.

In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction. The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of manufacturers.

“Companies noted a quicker increase in order book volumes, surpassing the average observed in nearly 20 years of data collection. Anecdotal evidence suggested that the introduction of new products and successful marketing initiatives contributed to enhanced sales performance,” the report said.

The survey also highlighted that new export orders experienced stronger growth, recovering from September’s weakest increase in 18 months, with gains noted in new contracts from Asia, Europe, Latin America, and the United States.

“Production volumes were ramped up to a greater degree in October, driven by faster growth in the consumer and investment goods categories. Companies cited buoyant demand, positive sales pipelines, and favourable market conditions as the factors behind the latest upturn in output,” the survey added.

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First Published: Nov 4, 2024 11:13 AM IST

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