India Manufacturing Growth Quickens In October

(RTTNews) - India's factory activity expanded at an accelerated pace in October, underpinned by GST relief, productivity gains, and tech investment, final survey data from S&P Global showed on Monday.

The HSBC manufacturing Purchasing Managers' Index climbed to 59.2 in October from 57.7 in September. A score below 50 indicates expansion, and the index was well above the flash estimate of 58.4.

GST reforms along with fruitful advertising and buoyant demand helped the strong and sharp upturn in new orders in October. As a result, output growth quickened, and the rate of expansion was the joint-best in five years. The survey revealed that new sales growth was centered on the domestic market as export orders rose at a softer rate.

On the price front, input price inflation eased to an 8-month low in October. Despite this, selling prices rose sharply due to demand strength and greater outlays on freight and labor effects.

The overall ease in operating costs encouraged firms to purchase additional raw materials and semi-finished items, and the buying levels expanded at the fastest pace since May 2023. Companies also increased their workforce numbers for the twentieth successive month.

"Looking ahead, future business sentiment is strong due to positive expectations around GST reform and healthy demand," Pranjul Bhandari, Chief India Economist at HSBC, said.