In November, industrial growth fell to a nine-month low, offsetting an increase in services, and India’s private sector activity grew at its weakest rate in six months. The S&P Global-compiled HSBC flash India Composite Purchasing Managers’ Index (PMI) fell to 59.9 this month from its final reading of 60.4 in October.
The flash India Manufacturing PMI fell from 59.2 last month to a nine-month low of 57.4 in November. The growth in factory output was the slowest since May.
India’s November flash PMI of 59.9 highlights the country’s ongoing growth, even if it has moderated from previous highs. Stable-to-positive outlooks for credit ratings are supported by robust activity, robust order books, and growing employment, particularly for domestic demand and issuers connected to infrastructure.
Despite being in expansionary territory, the manufacturing PMI fell to a nine-month low of 57.4 as new orders declined and the GST-led boost may have peaked. In the near future, issuer-specific fundamentals will take precedence over broad-based credit rating action due to emerging sectoral softness and global headwinds.
