Manufacturing PMI surges in Nov
Country’s mfg sector continues to show strong growth, driven by easing price pressures and strengthening demand
Mfg going strong
- Inflation falls to lowest level since Aug 2020
- New order growth remains strong, supporting further expansion
- Employment continues to grow, as firms expanded capacities
New Delhi: India’s manufacturing sector continued with its robust performance in November, mainly on the back of substantial easing in price pressures and strengthening demand from clients, a monthly survey said on Friday.
The strong performance of the manufacturing sector is expected to continue in 2024 as well. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose to 56 last month from the eight-month low level of 55.5 recorded in October. “A key feature of the latest results was a substantial easing of price pressures. Although average purchasing costs rose again, the rate of inflation eased to the lowest in the current 40-month sequence of increases and was negligible by historical standards,” it said.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said India’s manufacturing industry maintained its robust performance in November, with output regaining growth momentum. Firms’ ability to secure new business, both domestically and from abroad, remained central to the success of the sector. Sustained new order growth continued to be good news for the sector’s labour market, with recruitment remaining on an upward path, De Lima noted.
“Expanded capacities, rising workloads and the need to replenish stocks of finished goods collectively indicated that India’s manufacturing economy is clearly in good shape as 2023 draws to a close, with expectations for a continued strong performance in 2024,” De Lima said.
