Hitting to an eleven-month high, the Indian manufacturing sector accelerated further in the month of November, buoyed by healthier inflows of new orders. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - improved to 54 in November from 53.1 in October. This is the 16th consecutive month that the manufacturing PMI reading stood above the watershed 50 mark, which differentiates growth from contraction.
During the reported month, production at the factories witnessed growth at the second-quickest pace since October 2016, amid stronger demand conditions and greater sales. The rise was led by intermediate goods firms, although robust growth was also seen in the consumer and capital goods categories. Besides, new orders expanded at the second fastest rate in over two years, slower only than that seen in December 2017.
On the price front, cost inflation eased to a seven-month low in November month, but the revival in demand translated into improved pricing power among producers who raised their charges at a quicker rate. Meanwhile, business sentiment improved from October’s 20-month low, with Indian manufacturers forecasting better market conditions in the coming 12 months. Improved advertising campaigns was also a factor leading to predictions that production will expand in the year ahead.
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