India’s manufacturing sector growth accelerated in October, fuelled by faster increases in total new orders and international sales, leading to the creation of more jobs during the month, according to the HSBC data released on Monday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) compiled by S&P Global, rose from September’s eight-month low of 56.5 to 57.5 in October , indicating a substantial and accelerated improvement in operating conditions.
The upturn in performance was boosted by stronger demand for Indian goods. Companies noted a quicker increase in order book volumes that was stronger than the average seen in nearly 20 years of data collection. Anecdotal evidence suggested that the introduction of new products and successful marketing initiatives helped enhance sales performances, the report states.
New export orders also exhibited stronger growth, following the weakest uptick in a year-and-a-half during September. Panel members reported gains in new contracts from Asia, Europe, Latin America and the US. Production volumes were ramped up to a greater degree in October, fuelled by faster increases in the consumer and investment goods categories.
Monitored firms highlighted freight, labour and materials as the key sources of price pressures. Not only did manufacturers hire extra staff at the start of the third fiscal quarter, but also to a greater degree than in September. Around one-in-ten panellists reported an increase in employment, while one per cent shed jobs.