India's Manufacturing PMI Resilient At 55.7 In November

Manufacturing PMI remained resilient in November, with a faster expansion in production coinciding with a slowdown in inflation.

<div class="paragraphs"><p>Source: Unsplash</p></div>
Source: Unsplash

India's manufacturing activity remained resilient in November, with a faster expansion in production coinciding with a notable slowdown in inflation.

The India Manufacturing Purchasing Managers’ Index stood at 55.7 in November against 55.3 in October, according to a media statement by IHS Markit. A reading above 50 indicates expansion.

The headline figure was also above its long-run average of 53.7 and signalled the strongest improvement in operating conditions for three months.

India's manufacturing sector continued to perform well in November, besides heightened recession fears elsewhere and a deteriorating outlook for the global economy. It was business as usual for goods producers, who lifted production volumes to the greatest extent in three months amid impressive evidence of demand resilience. New orders and exports expanded markedly in the latest month
Pollyanna De Lima, economics associate director at S&P Global Market Intelligence

Demand resilience boosted manufacturing growth in India, with companies noting the quickest increases in new orders and production over the past three months.

November data highlighted the 17th successive expansion in manufacturing production across India, as companies responded to ongoing increases in new work intakes. Buying levels expanded at a marked and accelerated rate as firms also sought to benefit from relatively mild price pressures.

Input-cost inflation receded to the joint-weakest rate in 28 months, while charges rose at the slowest pace since February.

Companies also reported a notable improvement in international demand for their goods, with new export orders expanding at the second-fastest pace since May. The upturn in output was sharp, above trend, and the strongest since August.

New orders and production rose at quicker rates in the consumer and intermediate goods categories, with slowdowns registered by capital goods makers. Companies readjusted operating capacities in line with a pickup in sales.

Employment rose solidly for the ninth month in a row.

Signs of capacity pressure remained among manufacturers, as seen by a further increase in outstanding business levels.

Finally, firms were confident that demand would remain strong in the coming 12 months. As a result, they foresee growth in production volumes. Sentiment improved to its highest level in close to eight years.