Manufacturing operating conditions in India strengthened for the third successive month in November, as healthier inflows of new orders encouraged companies to lift production and input buying to greater extents than in October. Cost inflation moderated, but the revival in demand translated into improved pricing power among producers who raised their charges at a quicker rate. Elsewhere, job creation was sustained while sentiment picked up. The Nikkei India Manufacturing Purchasing Managers’ Index® (PMI®) rose for the third consecutive month in November, up from 53.1 in October to 54.0. The latest figure signalled the strongest improvement in the health of the sector in almost one year.
Buoyed by stronger demand conditions and greater sales, manufacturers increased production at the second-quickest pace since October 2016. The rise was led by intermediate goods firms, although robust growth was also seen in the consumer and capital goods categories. Likewise, new orders expanded at the second fastest rate in over two years, slower only than that seen in December 2017. Companies suggested that marketing efforts bore fruit, while stronger demand too boosted sales. Intermediate goods makers also fronted the upturn. The expansion in total new orders was supported by greater sales to international markets. Growth of new export work quickened to the fastest in just under four years, as producers reportedly received bulk orders from clients in key export destinations.
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