India’s PMI Manufacturing data rebounds in October

Manufacturing data for India today showed that manufacturing activity increased in October following a decline in September. The HSBC manufacturing purchasing managers index, a measure of overall manufacturing sector activity, rose to a score of 57.2 in October following a September score of 55.1. The PMI had dipped in September from the August score of 57.2 but has remained above a score of 50 for 19 consecutive months. A score above 50 is considered an expanding sector while a score below 50 signals contraction in that area.

Helping to boost the PMI this month were increases in new orders and exports but the data also showed pressures on production capacity and price inflation remained.

Frederic Neumann, Co-Head of Asian Economics Research at HSBC said in the report that, “After some bouncy data in the last few months, India’s economy has picked up steam again. The manufacturing sector remains supported by strong local consumption growth, and growing employment suggests that domestic demand will remain robust. Price pressures, however, are still too strong for comfort, possibly prompting the central bank to hike again before the end of the year.”