India’s manufacturing industry regains growth momentum, hiring up in services sector
Manufacturing and service sectors accelerated growth in October, driven by increased factory production and services, as per HSBC's PMI survey. Employment surged, with service sector hiring at its highest in 18.5 years, and export orders grew significantly, boosting India's industrial output outlook
image for illustrative purpose
New Delhi: India’s manufacturing industry regained growth momentum in October and the acceleration was supported by quicker increases in factory production and services activity, according to a new report. India’s private sector economy continued to showcase robust growth in October, according to the latest HSBC ‘flash’ PMI survey compiled by S&P Global.
Meanwhile, hiring was stronger in the service sector. The latest increase in employment was sharp and the quickest in 18-and-a-half years. Nevertheless, jobs still rose at a marked pace in the manufacturing industry, supporting the best upturn in payroll numbers at the composite level since February 2006.
Anecdotal evidence indicated that part and full-time workers had been taken on, with both permanent and temporary contracts offered. “Several components accelerated after a modest slowdown over the past two to three months. New orders and new export orders expanded at faster rates, providing a good omen for industrial production for the remaining months of 2024,” said Pranjul Bhandari, Chief India Economist at HSBC.
A quicker upturn in new work intakes encouraged companies to scale up business activity and recruit additional workers. In October, the uptick in growth momentum was accompanied by an intensification of price pressures. Manufacturers outperformed service providers regarding rates of expansion for output and sales, and also recorded faster increases in input costs and selling charges.
India's manufacturing and service sectors was inside growth territory (above 50.0) for the thirty-ninth successive month. “Indian businesses indicated a sharp increase in new order intakes during October. The expansion, which was mostly linked to positive demand trends, was also stronger than that recorded in September,” said the survey.
Latest data revealed that part of the upturn in total new orders was fuelled by an improvement in international demand for Indian goods and services. Rates of expansion in export sales accelerated at manufacturing firms and their services counterparts, it added.
