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| Photo Credit: B. Velankanni Raj
Manufacturing sector growth in October eased to the slowest tempo since February with the uptick in new orders hitting a one-year low, as per the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) that slipped to 55.5 from 57.6 in September.
Growth subsided on a number of fronts as demand for sure varieties of merchandise light with shopper items being the worst hit. Job creation was the weakest since this April, with lower than 4% of surveyed corporations hiring new employees.
Business confidence ranges slipped to a five-month low. Although corporations remained broadly constructive about future enterprise prospects, issues surrounding the trail for inflation and demand dampened spirits in comparison with the primary half of 2023-24. International orders additionally slowed to a four-month low although some corporations reported a rise in demand from Asia, Europe, Middle East and the U.S.
Input price pressures intensified for producers who reported rising costs for aluminium, chemical substances, leather-based, paper, rubber and metal. While producers continued to fill up on inputs, the tempo of accumulation was the slowest in eight months. However, the speed at which output costs have been raised by corporations receded.
“The survey’s new orders index slipped to a one-year low, as some firms raised concerns about the current demand picture for their products,” mentioned Pollyanna De Lima, economics affiliate director at S&P Global Market Intelligence.
“Consumer goods was behind most of the slowdown, recording considerably softer increases in sales, production, exports, input inventories and buying levels. Growth of all of the aforementioned variables was led by capital goods makers which, with the exception of new orders, registered accelerated rates of expansion,” she added.
Ms. De Lima additionally highlighted an fascinating discovering from the survey-based PMI’s qualitative proof. When requested about future output prospects, corporations signalled that rising inflation expectations have been anticipated to dent demand and subsequently manufacturing growth over the course of the approaching 12 months.
