Manufacturing sector activity recovered in October after three months of moderation, even as producers raised prices at the fastest pace in 11 years, while services’ offtake also improved, as per early indicators from a private survey of purchasing managers compiled by S&P Global Market Intelligence.
The HSBC Flash India Manufacturing Purchasing Managers’ Index (PMI) recovered from September’s eight month-low of 56.5 in September to 57.4 in October. PMI readings of over 50 indicate an expansion in activity. The Flash PMI readings are based on inputs from 80% to 90% of the 400-odd firms surveyed separately for manufacturing and services indices.
The Flash PMI for Services Business Activity moved up marginally from 57.7 in September to 57.9 October, while the HSBC Flash India Composite PMI Output Index that measures the month-on-month change in both manufacturing and services sectors’ offtake levels, improved sequentially from 58.3 to 58.6 this month.
“Manufacturing regained growth momentum in October, with several components accelerating after a modest slowdown over the past two to three months. New orders and new export orders expanded at faster rates, providing a good omen for industrial production for the remaining months of 2024,” said Pranjul Bhandari, chief India economist at HSBC.
Manufacturers outperformed service providers in the expansion pace for output and sales, and also witnessed faster increases in input costs and selling charges, but hiring in services firms was stronger than factories.
Published – October 24, 2024 08:16 pm IST
