Despite improving demand patterns, the nation’s industrial and service sectors improved in October compared to September. According to a statement from S&P Global, the HSBC Flash India PMI increased from 58.3 a month earlier to 58.6 in October.
A significant increase in manufacturing was the main driver of the activity rebound. Following an eight-month low of 56.5 in September, the HSBC Flash India Manufacturing PMI, which evaluates factory business conditions based on new orders, production, employment, supplier delivery times, and buy stockpiles, rebounded to 57.4 in October.
S&P Global reports that Indian companies reported a significant spike in new order intakes in October. The expansion was more robust than that observed in September and was mostly attributed to favorable demand patterns.
According to the most recent data, an improvement in the demand for Indian goods and services abroad contributed to a portion of the increase in total new orders. According to S&P Global, manufacturing companies and their service counterparts saw faster rates of growth in export sales.
Furthermore, the statistics demonstrated that continuous restocking initiatives drove an increase in manufacturing firms’ input purchases in October. According to S&P Global, pre-production inventories increased significantly as a result, although finished goods stocks slightly decreased as a result of warehouse sales fulfillment.
Participants in the survey reported price increases for steel, vegetables, meat, eggs, chemicals, and packaging. However, it stated that the overall cost inflation rate was still lower than the survey average.
In terms of employment, headcounts increased in both industries in October. According to S&P Global, “the most recent increase in employment was significant and the fastest in 18-and-a-half years.” According to anecdotal evidence, both temporary and permanent contracts were provided, and both part-time and full-time employees have been hired.
At the sub-sector level, business confidence for the upcoming months was mixed. According to S&P Global, “manufacturers were at their most optimistic level since July, while sentiment at services companies somewhat faded.”
