India's manufacturing sector exhibited remarkable expansion throughout November, with a slight cooling compared to October benchmarks, as reported by S&P Global. The nation's manufacturing purchasing managers index (PMI) registered a decline to 56.5 in November from 57.5 in October, yet it remained significantly above the crucial 50 mark, which delineates growth from contraction. Factory managers in India observed that positive demand trends translated into notable increases in sales and output.
However, firms acknowledged that their capacity for growth was partially hampered by competitive dynamics and price pressures. Amid rising demand, Indian goods producers elevated prices in November, with the latest data indicating that their selling prices surged to levels not seen since October 2013. On the input side, prices also ascended in November, albeit remaining relatively restrained by historical comparisons.
The inflation of input costs intensified, reaching its peak since July while still below its long-term average. Specifically, notable increases were reported in the prices of chemicals, cotton, leather, and rubber for the month. Additionally, India's industrial sector reported a boost in global sales during November.
The growth rate of international demand marked a four-month high, with participants noting gains from countries including Bangladesh, mainland China, Colombia, Iran, Italy, Japan, Nepal, the UK, and the US. Optimism prevailed among India's industrialists in November, as they provided encouraging forecasts for output in 2025.
The India manufacturing PMI, a key barometer of industrial health, was compiled by S&P Global from survey responses of 400 manufacturers collected from November 11 through November 25..