India's manufacturing PMI hits two-month high in October

New Delhi, October 24 (IANS). India’s manufacturing activity saw tremendous growth in October, as a result of which the HSBC Flash India Manufacturing Purchasing Managers’ Index (PMI) rose to a two-month high of 58.4, up from 57.7 in September. This information was given in the report released on Friday. Data compiled by S&P Global showed that India’s manufacturing sector is growing strongly. This is due to strong demand and less pressure on costs. The rise in manufacturing PMI, increase in new orders, increase in output and stable employment levels reflect the improvement in business conditions. According to Pranjul Bhandari, Chief India Economist at HSBC, the recent cut in GST rates has boosted domestic demand and also helped keep input costs under control. Bhandari further said that one of the reasons for the increase in manufacturing PMI in October is the reduction in GST rates. This reduced pressure on domestic demand and costs. The report noted that export-related problems due to US tariffs persist and are weighing on new export orders and future business optimism. “Both new orders and production are above January-July average levels. However, US tariffs weigh on new export orders and optimism for the future, which remain below January-July levels,” he said. However, the HSBC Flash India Composite Output Index – which measures the combined performance of the manufacturing and services sectors – fell to 59.9 in October from 61.0 in September. When PMI is above 50, it shows growth in economic activity. At the same time, when PMI is less than 50, a decrease in economic activity is seen. –IANS ABS/ Share this story Tags