Manufacturing rises in Nov, input costs at 40-month low

Demand stays high despite price hikes; labour costs increase even as inflation cooled

- Rhik Kundu

India’s manufacturing activity accelerated in November from an eight-month-low recorded the preceding month on robust demand, while input cost inflation slipped to 40-month low, a private survey said.

The purchasing managers index (PMI) for manufacturing rose to 56 in November, up from 55.5 in October, though it remained below 57.5 reported in September, according to S&P Global Market Intelligence. During October, manufacturing activity recorded the slowest rate of expansion since February. The 50-mark separates expansion from contraction.

The latest survey result comes a day after the data showed that the Indian economy grew at an impressive rate of 7.6% in the second quarter.

The rise in manufacturing activity was accompanied by a substantial easing of price pressures, the survey said. “Although average purchasing costs rose again, the rate of inflation eased to the lowest in the current 40-month sequence of increases and was negligible by historical standards," it said.