India's Manufacturing Growth Continues to Exceed Long-Term Averages: HSBC Report
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New Delhi, Dec 2 (NationPress) The growth rate of India's manufacturing sector continues to surpass its long-term averages, marking a notable improvement in the sector's health during November, according to the HSBC India Manufacturing PMI data disclosed on Monday.
India achieved a manufacturing PMI of 56.5 in November, which is a slight decrease from the previous month but remains well within the expansionary zone.
As stated by HSBC's Chief India Economist, Pranjul Bhandari, "The strong and wide-ranging international demand, highlighted by a four-month peak in new export orders, has propelled the ongoing growth of the Indian manufacturing sector."
Despite some price pressures affecting domestic sales, the momentum in new export orders has picked up.
The expansion rate of international demand reached its highest level in four months, with participants reporting increases from Bangladesh, mainland China, Colombia, Iran, Italy, Japan, Nepal, the UK, and the US.
With demand conditions remaining positive, Indian manufacturers have continued to enhance their production levels.
For the ninth consecutive month, factory employment in India saw an increase in November. Although the job creation rate softened from October, it remained robust. Panel members reported hiring on both permanent and temporary contracts, as reflected in the seasonally-adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global.
Indian manufacturers have also ramped up their purchasing of inputs for production and inventory purposes. While the increase in buying levels was significant, it was the lowest in nearly a year.
“The average lead times have improved further, attributed to strong ties with long-term suppliers. The enhancement in vendor performance was modest yet the best observed since July,” the report noted.
As a result, manufacturers were able to replenish their input stocks once more, with the accumulation rate significantly exceeding its long-term average.
