SLOWDOWN IN CONSUMER GOODS HITS INDIAN MFG GROWTH IN OCT, INDEX SLIPS TO 55.5

Output increased further at the start of the third fiscal quarter, stretching the current sequence of expansion to over two years

- NIVEDITA MUKHERJEE

The Indian manufacturing industry signalled the slowest rate of expansion since February as the seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index slipped from 57.5 in September to 55.5 in October 2023 as growth of several measures subsided with fading demand for certain types of products. There were substantial, albeit slower, increases in total new orders, production, exports, buying levels and stocks of purchases. Business confidence slipped to a five-month low amidst higher cost pressures, while output price inflation receded.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence suggests that India's manufacturing sector generated substantial growth in October, despite a challenging global economic environment. "Still, insights from surveyed purchasing managers pointed to the deceleration of several measures. The survey's new orders index slipped to a one-year low, as some firms raised concerns about the current demand picture for their products," says De Lima.