2023.11.0108:03:00UTC+00India Manufacturing Growth Softens In October

India's manufacturing growth slowed in October but remained robust despite challenging global economic conditions, survey results from S&P Global showed on Wednesday.

The manufacturing Purchasing Managers' Index posted 55.5 in October, down from 57.5 in September. The score was forecast to rise to 57.7.

A score above 50.0 indicates expansion. However, manufacturing activity registered its slowest growth since February.

The current sequence of increase in production stretched to over two years in October. The upturn was linked to positive market conditions and healthy intakes of new work. Nonetheless, growth eased to an eight-month low.

There was a deceleration in new order growth due to subdued demand for certain products and fierce competition. International sales logged strong increase but the pace was the weakest in four months.

Driven by the rise in new business, firms scaled up recruitment but the pace of job creation was the slowest since April. Backlogs of work were little-changed since September and suppliers were often able to deliver inputs in a timely manner.

Manufacturers added to their inventories and meet production schedules by purchasing additional materials. Input buying growth was the slowest in eight months.

Both input costs and output charges increased in October. Input costs increased further, while factory gate charges rose at a weaker extent.

Business sentiment remained firmly in positive territory, but slipped to a five-month low.