New work orders boost India's production growth in October: PMI
Healthy demand conditions boosted the growth of India's manufacturing industry in October
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New Delhi, Nov 1 Healthy demand conditions boosted the growth of India's manufacturing industry in October.
The headline seasonally-adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 55.9 (index reading) in October as against a reading of 53.7 in September.
The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.
Last month's seasonally adjusted IHS Markit India Manufacturing PMI was in expansion territory for the fourth month in a row.
Besides, the latest figure pointed to the strongest improvement in overall operating conditions since February.
"Manufacturing sector growth in India gained steam in October as companies scaled up production in line with a substantial upturn in new work intakes. Firms stepped up input purchasing amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high," the PMI report said.
"Panellists continued to report rising prices for several materials and transportation, with overall input costs increasing at the sharpest rate since February 2014. Subsequently, selling charges were lifted again."
Furthermore, the survey noted strong growth of both sales and production in each of the three broad areas of the manufacturing sector.
Particularly, the rise in intermediate goods was the sharpest.
Additionally, a notable pick-up in international demand for India's "goods" was noticed.
"New export work rose at a solid pace that was the quickest in three months."
IHS Markit Economics Associate Director Pollyanna De Lima said: "Manufacturing sector growth in India continued to gather momentum, with October data showing notably quicker expansions in new orders, production and input purchasing."
"With companies gearing up for further improvements in demand by building up their stocks, it looks like manufacturing activity will continue to expand throughout the third quarter of fiscal year 2021-22 should the pandemic remain under control. Upbeat business confidence and projects in the pipeline should also support production in the coming months."
