2013.11.0102:16:00UTC+00Indian Manufacturing Sector Contracts For Third Month: Markit

Activity in the Indian manufacturing sector decreased for the third successive month in October, data from a survey conducted by the HSBC Bank and Markit Economics showed Friday.

The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector stayed unchanged at 49.6 in October. The index has remained below the no-change 50 mark - which separates growth from contraction - for the third month in a row.

New orders placed with goods producers decreased at a faster rate in October. Reflective of a sustained reduction in order intakes, firms lowered their production volumes further during the month. However, export business grew for the first time in three months.

Manufacturers of consumer goods increased their workforces in October, in response to the stronger new order flows in that sector.

Data showed that Input cost inflation faced by Indian goods producers accelerated to a 16-month high, and selling prices rose at the fastest pace since February.