Economic Buzz: India?s manufacturing activity remains strong in October despite slower growth

India?s manufacturing sector continued to expand strongly in October, with the HSBC India Manufacturing PMI easing to 54.7 from 55.1 in September. The index remained comfortably above the 50-mark, indicating sustained growth. However, output and new orders recorded slightly slower increases compared with the previous month.

Export orders provided support, rising at the fastest pace in six months, driven by demand from markets including the US, UK, UAE and neighbouring Asian countries. Manufacturing output also increased sharply, although growth moderated.

Cost pressures eased, with input price inflation falling to its lowest level since February. Selling prices rose only marginally, marking the weakest increase in nearly four years. Employment increased for the second consecutive month, but hiring remained modest.

Manufacturers continued building inventories, with finished goods stocks recording a record increase. However, business confidence weakened, with only around 18% of firms expecting higher output over the coming year.

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