India's Factory Growth Cools in October Amid Moderating Orders and Production Ticks
India's manufacturing sector experienced a slight slowdown in October as output and new orders expanded at a more modest pace. Despite the dip, the headline PMI index continues to hold comfortably above the critical growth threshold.
- The HSBC India Manufacturing PMI declined to 54.7 in October from 55.1 in September.
- Growth momentum remains resilient, staying well above the neutral 50.0 threshold and historical averages.
- Softer gains in incoming orders and overall production volumes drove the month-on-month deceleration.
NEW DELHI — Industrial momentum across India experienced a mild deceleration during October, driven by a softer expansion in production volumes and incoming new business, according to the latest private sector data released this week.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) retreated to 54.7 last month, down from 55.1 in September. Despite the contraction from the previous month's readings, the sector continues to exhibit robust health by remaining significantly above the critical 50.0 neutral mark that separates economic expansion from contraction.
According to market analysis reports by The Hindu, the industrial climate continues to benefit from steady underlying demand, even as global headwinds and domestic inventory adjustments temper the meteoric pace witnessed earlier in the fiscal year. Economists note that while the velocity of growth has eased, the sector's performance continues to outperform its long-run historical averages.
