Following an eight-month low of 56.5 in September, India’s manufacturing activity rebounded to 57.5 in October, demonstrating a significant and quicker improvement in operating conditions, according to data provided by S&P Global on Monday. It claimed that October saw an acceleration of output growth driven by quicker growth in both foreign sales and total new orders. A score below 50 indicates contraction, whereas a print above 50 indicates expansion, according to the Purchasing Managers’ Index (PMI).
The demand for raw materials increased as a result of the corresponding increase in production requirements, and suppliers were easily able to provide inputs on time. In addition, manufacturers of goods were more inclined to hire more workers, which increased operating costs when combined with growing material prices. According to the S&P Global study, selling charges and input prices both rose more quickly.
The increased demand for Indian products contributed to the performance improvement. Businesses observed a higher and faster rise in order book volumes than the average observed over almost two decades of data collecting. According to the survey, anecdotal evidence indicated that successful marketing campaigns and the launch of new items improved sales results.
With advances recorded in new contracts from Asia, Europe, Latin America, and the United States, the survey report also observed that new orders showed greater growth in September compared to the weakest uptick in a year and a half.
The October report showed increased inflationary pressures throughout India’s manufacturing sector. In contrast, input price inflation remained below its long-term trend while reaching a three-month high. In addition, output prices rose steadily, surpassing the trend of the series. The main sources of pricing pressures, according to the monitored enterprises, were labor, materials, and freight. In addition to hiring more employees at the beginning of the third fiscal quarter, the manufacturers did so on a larger scale than they had in September.
