Manufacturing continues to exhibit strength

Indian manufacturing sector showed vigour amidst the prevailing inflationary pressures and global recession fears. The latest October data released by S&P Global India Manufacturing Purchasing Managers’ Index (PMI) showed that PMI for India crawled up at 55.3 from 55.1 in September month. PMI manufacturing in India has constantly remained above the 50 mark in each month since June 2021. A PMI value above 50 indicates an ‘increase’ in economic activity while a score below 50 indicates ‘reduction’.

As per the S&P data, a respectable growth in the production of cement, coal and electricity has led to the improved performance of the overall manufacturing activity in India.

Pollyanna De Lima, economics Associate Director at S&P Global Market Intelligence said that both factory orders and production in India have increased in October. He said, “Manufacturers continued to loosen the purse strings as they expect demand buoyancy to be sustained in coming months. There was a marked rise in input purchasing, with firms adding to their inventories to better align with client purchasing. Capacities were again expanded to accommodate for improving sales”.