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Manufacturing Growth Slows In October As Output, New Orders Rise At Slower Pace
Sentiment: NeutralHigh Priority
What Happened?
India's manufacturing sector growth eased in October, with output and new orders increasing at a slower pace. The HSBC India Manufacturing PMI fell to 54.7, indicating a slight loss of momentum.
Key points
- The HSBC India Manufacturing PMI decreased to 54.7 in October from 55.1 in September.
- New export orders reached a six-month high, driven by strong international demand.
- Cost pressures moderated, with overall input cost inflation at its lowest since February.
- Firms continued to add jobs and build inventories, although hiring was subdued.
- The manufacturing sector remains in expansionary territory, above its long-run average.
Key insights
- The easing of manufacturing growth may lead to cautious business sentiment in the coming months.
- Sustained international demand could support future growth despite domestic challenges.
- Moderating cost pressures may provide manufacturers with more room to maneuver in pricing.
Why it matters
The slowdown in manufacturing growth could impact overall economic performance and job creation in India.
Source
Times Now
