India’s Manufacturing PMI Eases To 56.6 In November, Growth Slows But Remains Strong

India’s manufacturing activity continued to expand in November, with the Manufacturing Purchasing Managers’ Index (PMI) at 56.6, down from 59.2 in October, according to data compiled by S&P Global.

Despite the decline, overall growth remained robust, as the index stayed well above the neutral mark of 50. A reading above 50 signals economic expansion, while below 50 indicates contraction in manufacturing or construction. A reading of exactly 50 reflects no change.

Total new orders and output grew at above-trend rates but at their weakest pace in nine months. Export order growth also softened, rising at the slowest rate in over a year.

Pranjul Bhandari, Chief India Economist at HSBC, said: “India’s final November PMI confirmed that US tariffs caused the manufacturing expansion to slow. The new export orders PMI fell to a 13-month low. Business confidence, as indicated by expectations for future output, showed a big fall in November, potentially reflecting increasing concerns about the impact of tariffs. The boost from the cuts in goods and services tax (GST) may be fading and it might be insufficient to offset the tariff headwind to demand.”

The HSBC Flash India Composite Output Index, which tracks the combined performance of India’s manufacturing and services sectors, fell to 59.9 in November from 60.4 in October, marking a six-month low, according to S&P Global data. This seasonally adjusted index, which measures month-on-month changes in combined output, indicated a slower rate of expansion.