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India's manufacturing sector growth improves to 56.0 in November

01 Dec 2023 Evaluate

After slowing in October, India's manufacturing sector growth improved in the month of November, as strengthening client demand and more favourable input supply boosted production volumes. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) grew to 56.0 in November 2023 from 55.5 in October 2023. The growth was 57.5 in September 2023. In November, another substantial increase in overall levels of new work received by Indian goods producers. Moreover, the growth rate improved from October's one-year low and outpaced the series average. 

The trend for new export business showed signs of resilience, despite weakening in November. New export orders rose for the twentieth month in a row and solidly, albeit at the slowest rate since June. As per the report, manufacturing employment in India increased for the eighth successive month heading towards the end of the 2023 calendar year. It said new work in the pipeline and a healthy demand environment spurred recruitment. Growth ticked higher, but was moderate overall. Purchasing activity and stocks of inputs rose during November, in many cases owing to buoyant demand conditions. 

On the price front, inflationary pressures retreated, with purchase costs rising at the weakest pace since the current sequence of increases began in August 2020. Charges rose modestly, as the vast majority of firms opted to leave their fees unchanged since October. Meanwhile, the outlook for India's manufacturing sector remained favourable in November, with firms seeing opportunities in the form of demand strength, marketing initiatives and new clients making enquiries about a wide range of products. However, the overall level of positive sentiment slipped to a seven-month low amid rising inflation expectations.


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