India’s factory activity remained in expansion in October, but the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) showed slower overall momentum even as export orders strengthened, according to Reuters and Business Standard.
The outlets reported a final reading of 54.7, compared with September’s 55.1 and the earlier flash estimate of 54.9. S&P Global’s methodology says the seasonally adjusted index draws on responses from about 400 manufacturers. It combines changes in orders, output, employment, supplier delivery times and purchasing stocks. A reading above 50 indicates improving business conditions from the previous month; the index tracks direction, not the percentage rate of output growth.
Reuters and Business Standard reported that new export orders improved more strongly than in any month over the previous six months. Total new orders slipped slightly from September’s seven-month high, and output growth moderated, according to the reports.
Manufacturers added staff for a second consecutive month, but at a slower pace than in September. Both outlets reported that capital goods producers reduced staffing.
Reuters separately reported that finished-goods inventories rose at the fastest rate in the survey’s more than 21-year history. Input purchases continued to increase, though the rise was the weakest in 64 months, the outlets reported. HSBC Chief India Economist Pranjul Bhandari linked the buildup of input stocks to efforts to guard against possible shortages and meet production needs amid global volatility, Business Standard reported.
Input-cost inflation was at its lowest level since February, while manufacturers’ selling-price increases were the mildest in nearly four years, according to Reuters and Business Standard.
