India factory growth slows in October, export orders jump, PMI shows
INDA•India’s manufacturing PMI eased to 54.7 in October from 55.1 in September, below a preliminary estimate of 54.9, while export orders grew at their fastest pace in six months. Selling-price increases slowed to their weakest in nearly four years.
1. Growth eases
India’s manufacturing growth slowed in October as domestic demand eased and hiring weakened, a private survey showed. The HSBC India Manufacturing PMI, compiled by S&P Global, fell to 54.7 from 55.1 in September; readings above 50 indicate growth.
2. Exports strengthen
New orders pulled back marginally from September’s seven-month high, while export orders accelerated to their fastest pace in six months. Manufacturers built finished-goods inventories at a record pace in the survey’s more than 21-year history, while raw-material purchasing growth slowed to its weakest in the 64-month expansion sequence.
3. Prices and hiring
Factory employment grew for a second month, but more slowly than in September, with capital-goods makers cutting staff. Input-cost inflation eased to its lowest since February, and selling-price rises slowed to their weakest in nearly four years. HSBC India economist Pranjul Bhandari said producers increased input inventories to the greatest extent in eight months, building precautionary buffers against potential shortages.
