Indian manufacturing activity improved further in the month of October, as companies scaled up production in line with a substantial upturn in new work intakes. Firms stepped up input purchasing amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high.
As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 55.9 in October as against 53.7 in September. Amid reports of improved market confidence, rising requirements among clients and successful marketing, new orders continued to expand in October.
On the inflation front, the overall rate of input cost inflation surged to a 92-month high. Some firms opted to pass part of the additional cost burden on to their clients by lifting output charges. However, with the vast majority of manufacturers leaving their fees unchanged, the overall rate of inflation was moderate.
