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India's manufacturing PMI slips to 56.5 in November amid rising competition
Industry News- Dec 04,24
Input cost inflation reached its highest level since July, with items like chemicals, cotton, leather, and rubber seeing price hikes.
India's manufacturing sector growth eased in November, with the Purchasing Managers’ Index (PMI) slipping to 56.5 from 57.5 in October, marking a joint 11-month low, according to a survey by S&P Global. Despite the decline, the PMI remained in expansionary territory, as a reading above 50 indicates growth.
The survey highlighted that while favourable demand conditions supported growth, fierce competition and intensifying price pressures limited new business intake. Indian manufacturers raised selling prices at the fastest rate since October 2013 to counter higher input costs.
Pranjul Bhandari, Chief India Economist, HSBC, noted that although the PMI reflects continued expansion, the rate of output growth has slowed due to rising inflation. New export orders hit a four-month high, driven by demand from markets such as Bangladesh, China, the UK, and the US.
Input cost inflation reached its highest level since July, with items like chemicals, cotton, leather, and rubber seeing price hikes. However, inflation remained below its long-term average.
On the employment front, factory jobs in India increased for the ninth consecutive month, albeit at a slower pace than in October. Manufacturers continued to hire staff on both permanent and temporary bases, while purchasing activity rose sharply, although at its weakest level in nearly a year.
Business optimism remained high, supported by expectations of strong demand, new product launches, and recent capacity expansions, which are predicted to boost output in 2025.
(Business Standard)
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