New Delhi : India’s manufacturing sector showed signs of deceleration in November, with the Purchasing Managers’ Index (PMI) declining to 56.5, down from October’s 57.5, according to the HSBC Final India Manufacturing PMI compiled by S&P Global.
The November figure represents an 11-month low, though remaining firmly within expansionary territory.
Initial flash PMI surveys had projected slightly higher numbers, with an early estimate of 57.6 for November, which was subsequently revised to 57.3.
The final data revealed a more modest reading, indicating a subtle but notable moderation in manufacturing activity.
Pranjul Bhandari, Chief India economist, HSBC, highlighted the sector’s nuanced performance.
Despite the slight downturn, international demand remained robust, with new export orders reaching a four-month high.
However, the rate of output expansion is decelerating, influenced by intensifying price pressures across the manufacturing landscape.
The economic context underscores additional challenges. Input prices for intermediate goods, including chemicals, cotton, leather, and rubber, experienced increases in November.
Simultaneously, output prices reached an eleven-year peak, reflecting manufacturers’ efforts to pass rising input, labour, and transportation costs onto consumers.
This manufacturing slowdown coincides with broader economic trends, as India’s real GDP growth declined to 5.4 percent in the July-September 2024 quarter—a seven-quarter low.
This represents a significant reduction from the 6.7 percent growth in the previous quarter and the 8.1 percent recorded in the same period of 2023, primarily attributed to weakened manufacturing growth and contractions in mining and quarrying sectors.
