S&P Global: India’s manufacturing sector remains strong in Nov. ’24

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index™ (PMI) fell from 57.5 in October to a joint 11-month low of 56.5 in November, signaling a softer, yet still robust, improvement in the sector’s health. Despite the slowdown, the growth rate remained above the long-term average.

Goods producers saw a slightly weaker increase in new business in November 2024, the second slowest in 11 months. Growth was driven by strong demand but hampered by competition and price pressures.

Cost inflation increased significantly in the third fiscal quarter, reaching its highest level since July but staying below the long-term average. Prices of chemicals, cotton, leather, and rubber rose during this period.

“India recorded a 56.5 manufacturing PMI in November, down slightly from the prior month, but still firmly within expansionary territory. Strong broad-based international demand, evidenced by a four-month high in new export orders, fuelled the Indian manufacturing sector’s continued growth” said Pranjul Bhandari, Chief India Economist at HSBC.

Attribution: S&P Global report

Subediting: Y.Yasser