PMI data: India's manufacturing growth rate improves in October
PMI: India's core manufacturing PMI rose significantly in October, as the economy's operating conditions continue to improve broadly. A sharp rise in new orders and international sales indicate strong demand in India's manufacturing sector. Let's know about this in detail.
From an eight-month low in September, India's manufacturing growth rate improved to 57.5 in October. On Monday, this information was given in a monthly survey. Operating conditions significantly and quickly improved, as seen by the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI), which increased from an eight-month low of 56.5 in September to 57.5 in October.
In PMI language, a score above 50 indicates expansion, while a score below 50 indicates contraction. Pranjul Bhandari, Chief India Economist, HSBC, said, "India's core manufacturing PMI increased significantly in October, as the economy's operating conditions continued to improve broadly. The rapid growth in new orders and international sales reflects the robust demand growth in India's manufacturing sector."
Strong demand propelled the performance of Indian goods. Moreover, new product launches combined with successful marketing initiatives supported the sales performance. New export orders also grew strongly from its lowest growth in a year and half times seen during September. According to the panel members, new contracts came from Asia, Europe, Latin America, and the US.
In price terms, October's data indicated solid inflationary pressures within the Indian manufacturing sector. Goods producers were also more keen on hiring, which pushed up material costs along with business spending. The rates of both input prices and sales charges increased strongly.
