India Manufacturing PMI rises to 55.3 in Oct

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 55.3 in October, up from 55.1 in September.

The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.

The latest figure was above its long-run average (53.7), 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.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: "The Indian manufacturing industry again showed signs of resilience in October, with factory orders and production rising strongly despite losing growth momentum.

"Manufacturers continued to loosen the purse strings as they expect demand buoyancy to be sustained in coming months. There was a marked rise in input purchasing, with firms adding to their inventories to better align with client purchasing. Capacities were again expanded to accommodate for improving sales. The Future Output Index component indicated robust business optimism towards the year-ahead outlook for output.

"Consumer goods was the best-performing category in October, recording the greatest performances for output, total sales and exports. Growth for all of the aforementioned areas was sustained in the intermediate and investment goods sub-sectors, albeit with slowdowns since September."

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