India's manufacturing surge continues in October, PMI hits 57.5 amid strong demand
October saw faster expansions in both total new orders and exports, driven by increased demand from markets across Asia, Europe, Latin America, and the U.S. Businesses reported that new products and successful marketing campaigns were significant factors in boosting sales.
ANI
Nov 04, 2024 11:35 IST
New Delhi [India], November 4 (ANI): India's manufacturing sector showed promising signs of growth in October, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) climbing from September's 56.5 to 57.5.
This jump reflects the strongest performance since early 2024 and highlights a rise in both domestic and international demand, supported by new orders and increased production.
According to the latest report from HSBC, compiled by S&P Global, October saw faster expansions in both total new orders and exports, driven by increased demand from markets across Asia, Europe, Latin America, and the U.S. Businesses reported that new products and successful marketing campaigns were significant factors in boosting sales.
This rise in demand led to an increase in production, with consumer and investment goods experiencing particularly strong growth.
To meet this surge, companies raised their purchases of raw materials, with suppliers able to meet these needs smoothly. This increase in activity also spurred hiring across manufacturing firms, with nearly one in ten companies reporting new job additions.
Price pressures, however, are beginning to mount. The cost of raw materials, labor, and transportation nudged input price inflation to a three-month high.
Pranjul Bhandari, Chief India Economist at HSBC, said, "India's headline manufacturing PMI picked up substantially in October as the economy's operating conditions continue to broadly improve. Rapidly expanding new orders and international sales reflect strong demand growth for India's manufacturing sector."
'Meanwhile, input and output prices are both increasing as a result of persistent inflationary pressures in materials, labour, and transportation costs. To start the third fiscal quarter, business confidence is also very high due to expectations of continued strong consumer demand, new product releases, and sales pending approval," Bhandari added.
In response, companies also raised their selling prices, with many attributing this to the need to offset the rising cost of doing business. (ANI)
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