GUWAHATI: India's manufacturing sector growth slowed to an 11-month low in November, as the Purchasing Managers’ Index (PMI) dropped to 56.5 from October's 57.5.
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According to an HSBC India Manufacturing PMI survey conducted by S&P Global, this figure reflects challenges posed by rising inflation and intensified competition, even though it is still above the expansion threshold of 50.
Pranjul Bhandari, Chief India Economist at HSBC, highlighted that the sector remains in expansionary territory but noted the moderation in growth due to rising costs. “Input prices for various goods such as chemicals, cotton, leather, and rubber increased in November,” Bhandari said. “These cost pressures were transferred to consumers, with output prices rising at their fastest pace since October 2013.”
Despite the slowdown, international demand provided a silver lining, with export orders reaching a four-month high, helping sustain manufacturing activity. However, factory output expansion has begun to decelerate due to cost pressures and competition.
The survey also revealed that businesses faced weaker growth in new orders, indicating challenges in maintaining robust demand.
Meanwhile, recent government data revealed that India's economic growth slowed to 5.4% in the July-September quarter, a near two-year low, with manufacturing and mining sectors underperforming.