Boosted by international demand and rising sales, India's manufacturing sector's long-running expansion accelerated in October, as reported by S&P Global. The purchasing manager's index (PMI) for India's manufacturing sector rose to a seasonally adjusted 57.5 in October from 56.5 in September, advancing further above the critical 50-mark that distinguishes growth from contraction.
India's manufacturing PMI has indicated expansion in every month since January 2021. Factory managers experienced strong demand for goods, with anecdotal evidence suggesting that the rollout of new products and effective marketing strategies contributed positively to sales performance. In October, export orders also witnessed a rise, particularly driven by new contracts from Asia, Europe, Latin America, and the US.
Industrial managers highlighted a robust demand for investment goods, which are capital or products utilized in commercial activities rather than consumer use. Additionally, factory managers expanded their payrolls in October, noting rising input costs and subsequently increasing charges to customers.
New challenges arose, as expressed by S&P Global: "Input and output prices are both increasing as a result of persistent inflationary pressures in materials, labor, and transportation costs." Optimism was prevalent among managers in India's factory sector concerning their 12-month forward forecasts, as business confidence soared due to anticipated strong consumer demand, new product launches, and sales awaiting approval.
The India manufacturing PMI was compiled by S&P Global through survey responses from a panel of 400 manufacturers between October 9 and October 25..