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India's Manufacturing PMI Eases to 54.7 in October as Export Orders Hit Six-Month High
Sentiment: NeutralHigh Priority
What Happened?
India's manufacturing activity grew at a slower pace in October, with the PMI dropping to 54.7 from 55.1 in September. Strong overseas demand cushioned the slowdown, particularly in export orders.
Key points
- The HSBC India Manufacturing PMI fell to 54.7 in October.
- New export orders increased at their fastest pace in six months.
- Factory employment rose for the second consecutive month.
- Input cost inflation eased to its lowest level since February.
- Business confidence among manufacturers declined from September.
Key insights
- The increase in export orders may lead to sustained production levels despite domestic slowdowns.
- Continued hiring in manufacturing suggests a cautious optimism among firms.
- Eased inflation pressures could provide manufacturers with more pricing flexibility.
Why it matters
The PMI's decline indicates a slowdown in manufacturing growth, which could affect economic forecasts.
Source
Times of India
