India's manufacturing sector saw a robust acceleration in growth in October, attributed to rising new orders that boosted both production and business confidence, as reported by S&P Global on Monday. The HSBC final manufacturing Purchasing Managers' Index (PMI) climbed to 57.5 in October, up from the eight-month low of 56.5 recorded in September, and surpassed the preliminary estimate of 57.4. A PMI score above 50 signals expansion in the sector.
This growth can be credited to a surge in demand for goods. Survey respondents indicated that the introduction of new products and effective marketing strategies significantly improved sales performance. Export orders experienced stronger growth, recovering from September's 18-month low. Manufacturers increased production rates, particularly in consumer and investment goods.
Regarding pricing, the survey highlighted that input price inflation reached a three-month high but remained below the long-term average. Meanwhile, output prices rose at a pace faster than the historical average of the series.
In terms of employment, manufacturers increased their workforce more significantly than in September, marking the first reduction in backlogs in over a year. Increased demand led to further rise in purchases, and input delivery times were reduced for the eighth consecutive month, with pre-production inventories also rising substantially.
Finally, manufacturers expressed heightened optimism concerning future output volumes, with confidence levels exceeding the long-term average over the 13-and-a-half-year history of the series.
