India Manufacturing Growth Eases To 9-month Low

(RTTNews) - India's manufacturing activity continued to expand strongly in November, though at the weakest pace in nine months, final survey data from S&P Global showed on Monday.

The HSBC manufacturing Purchasing Managers' Index dropped to 56.6 in November from 59.2 in October. A score below 50 indicates expansion, and the index was below the flash estimate of 57.4.

Both output and new orders grew at above-trend rates, but the rate of expansion was the slowest since February amid reports of challenging market conditions, delays in project starts, and rivalry among firms. Nonetheless, the overall growth in orders was driven by competitive pricing, positive demand trends, and greater client interest.

New business growth and efficiency gains helped the upturn in output, while the acceleration in increase was curbed by subdued demand for some of their products, constrained output levels at manufacturing units.

In line with easing new order growth, Indian goods producers reduced their purchasing activity and workforce numbers, with employment rising at the softest pace in twenty-one months.

On the price front, input price inflation eased to a 9-month low, and selling price inflation also retreated to an eight-month low.

Looking ahead, manufacturers remained positive about output expectations over the next twelve months, though the sentiment fell to its lowest level in nearly three-and-a-half years amid concerns around a competitive landscape, including competition from international firms.