Manufacturing PMI Expands For Fourth Straight Month
A gauge of activity across India’s manufacturing sector expanded for the fourth straight month.
The IHS Markit India Manufacturing Purchasing Managers’ Index stood at 55.9 in October against 53.7 in September, according to a media statement. A reading above 50 indicates economic expansion.
Amid improved market confidence, rising requirements among clients and successful marketing, new orders continued to expand in October. The upturn was the fastest in seven months, the release said.
Factory output, too, increased at the strongest pace since March. While strong growth in sales and production were noted in each of the three broad areas of the manufacturing sector, intermediate goods witnessed the sharpest expansion. New export work rose at the quickest pace in three months.
The overall rate of input cost inflation surged to a 92-month high. Anecdotal evidence highlighted higher chemical, fabric, metal, electronic component, oil, plastic and transportation costs. Some firms opted to pass part of the additional cost burden on to their clients by lifting output charges. But with the majority of manufacturers leaving their fees unchanged, the overall rate of inflation was moderate.
Employment continued to decline though the pace slowed. Predictions that business conditions will improve further as the pandemic retreats boosted confidence. The overall degree of optimism strengthened to a six-month high.
With companies gearing up for further improvement in demand by building up their stocks, it looks like manufacturing activity will continue to expand throughout the third quarter of FY22, should the pandemic remain under control.Pollyanna De Lima, Economics Associate Director, IHS Markit