Economic Buzz: Indias Manufacturing PMI Rises To 55.3 In October

1 Nov 2022 , 11:29 AM

The latest PMI results indicated that economic growth in the Indian manufacturing industry remained robust, and price pressures were contained. October data showed historically marked expansions in factory orders and quantities of purchases, while production growth outpaced its long-run average despite softening to a four-month low. At the same time, cost burdens rose at a broadly similar rate to Septembers 23-month low, while selling charge inflation moderated to the weakest since February. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers Index (PMI) was up from 55.1 in September to 55.3 in October, above its long-run average (53.7) and indicating a stronger improvement in the health of the sector. The upward movement in the headline figure largely reflected stronger increases in employment and stocks of purchases. Firms were again able to secure additional work in October, taking the current sequence of growth to 16 months. Overall, factory orders increased at an above-trend pace that was nonetheless the weakest since June. New export orders also rose markedly, with the pace of expansion ticking higher. The overall rate of cost inflation was the second-weakest for two years, ahead of that registered in the prior survey period. Powered by Commodity Insights