In October, India’s manufacturing sector activity, as measured by the S&P Global Purchasing Managers’ Index, stood at 55.5, showing a decline from the previous month’s figure of 57.5 in September and 58.6 in August. Although this reading is above the crucial 50-point mark, indicating expansion, it marks the lowest level in eight months. S&P Global’s report attributes this decrease to competitive pressures and weak demand in certain facilities.
The report highlights that while there was growth in total new orders, production, exports, buying, and stocks, the pace of expansion was slower compared to previous months. Hiring activity decreased significantly, and business confidence reached a five-month low. Only a small fraction (less than 4%) of companies increased their workforce, while the majority (95%) maintained their current staffing levels. Job creation slowed down to its lowest rate since April.
Despite the slowdown, India’s manufacturing output continued to expand in October, extending the ongoing period of growth to over two years. This growth was attributed to favorable market conditions and a steady influx of new orders, according to S&P Global. International sales, although showing a weaker increase in October, remained historically robust. Companies that reported growth in foreign orders saw gains from various regions, including Asia, Europe, the Middle East, and the US.