AMN/ WEB DESK
India’s manufacturing PMI expands at a robust pace in November; Employment rises solidly for the ninth month in a row.
A stronger upturn in factory orders helped drive India’s manufacturing industry’s headline Purchasing Managers’ Index (PMI) higher in November, according to a private agency survey.
The S&P Global India Manufacturing PMI highlighted a seventeenth successive expansion in manufacturing production across India, as companies responded to ongoing increases in new work intakes. As per the report, the upturn in output was sharp, above trend, and the strongest since August.
Posting PMI at 55.7 in November, up from 55.3 in October, the seasonally adjusted PMI signalled the strongest improvement in operating conditions for three months.
The headline figure was also above its long-run average of 53.7. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.
The index is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
The S&P agency said firms were confident that demand would remain strong in the coming 12 months. As a result, they foresee growth of production volumes, and Sentiment improved to its highest level in close to eight years. Companies readjusted operating capacities in line with a pick-up in sales.
Employment rose solidly, and for the ninth month in a row. The PMI is a weighted average of the five indices, namely New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%). According to survey participants, demand strength and successful marketing efforts boosted overall sales.
November data highlighted a seventeenth successive expansion in manufacturing production across India, as companies responded to ongoing increases in new work intakes.