India’s Manufacturing PMI Increases To 56 In November, Sector Set To Perform Strongly In 2024: S&P Global

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) increased to 56 in Nov, up from the eight-month low level of 55.5 logged a month earlier in Oct.

The manufacturing sector in India continued to perform strongly in November, helped by the substantial easing in price pressure and strengthening demand from clients, a survey revealed on Friday. The survey by S&P Global Market Intelligence stated that the manufacturing sector is expected to maintain its robust performance in 2024 as well.

The survey revealed that the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) increased to 56 in November, up from the eight-month low level of 55.5 logged a month earlier in October, reported PTI. The survey found that a substantial relaxation in price pressures remained the driving factor in the latest results. 

The survey further stated that while average purchasing costs jumped again, the inflation rate moderated to the lowest in the current 40-month sequence of increase and was negligible by historical standards.

Commenting on the survey findings, Pollyanna De Lima, economics associate director, S&P Global Market Intelligence, stated, “India's manufacturing industry maintained its robust performance in November, with output regaining growth momentum. Firms' ability to secure new business, both domestically and from abroad, remained central to the success of the sector. Sustained new order growth continued to be good news for the sector's labour market, with recruitment remaining on an upward path.”

Lima added that increased capacities, surging workloads, and the need to refill stocks of finished goods together displayed that the manufacturing economy in India is in good condition as the year ends while stating that the expectations for performance in 2024 remain to be robust.

Notably, the survey is prepared by S&P Global, on the basis of responses to questionnaires shared to purchasing managers in a panel of about 400 manufacturers. The survey found that after easing in October, output growth gained pace as strengthening client demand and improved input supply boosted production volumes. 

The survey observed that inflationary pressures retreated and purchase costs increased at a very weak pace since the current sequence of increases started in August 2020. Charges increased moderately, as the majority of the companies chose to let their fees remain unchanged since October, it noted. 

Lima further stated, “In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction. Prices for raw materials and components still rose in November but improved availability at suppliers amid subdued global demand for inputs led to a considerable retreat in cost pressures. Some concerns over prices increasing in the near-term were reflected in the data for business sentiment, but there was also a softer uptick in output charges amid a reduced inflationary environment.”